Politicos, satraps look to launder black money via Jan Dhan accounts

NEW DELHI: Some bank officials are under pressure from local strongmen and regional satraps to convert their black money through Jan Dhan accounts and the existing currency exchange mechanism.

A senior official at a state-run bank said he received threats from a local politician to convert his Rs 50 lakh through this mechanism. "I was told that if I will not do it he will ensure that I do not reach home safely," he said, requesting anonymity.

The Jan Dhan programme was a financial inclusion mission by the government that sought to provide every household with access to banking services.

Most of these zero-balance accounts have suddenly seen activities since the government announced the demonetising of the Rs 500 and Rs 1,000 notes in its fight against black money. These accounts are widely being misused by conning the poor to channel black money into the banking system, said bankers.

"They know these people (account holders) which ensures that they will not abscond with their money and hence, can use them as conduits. We have little control," said the official at the state-run bank, adding that questioning such people can lead to a backlash from those in power.

Under the current facility, people can withdraw up to Rs 4,000 a day from banks by exchanging the demonetised notes. While there are huge crowds at banks to avail of this, some bank officials that ET spoke to said there is pressure from politically exposed people to service their retinue first.

"I have not received any threats but I got calls asking favour to service people from a particular community first," said an official with Oriental Bank of Commerce posted in Uttar Pradesh.

Another banker with Indian Overseas Bank said there was huge pressure not only from politicians but also from senior bureaucrats who want employees in their departments to be serviced first.