UP Jan Dhan Alert: 20 Lakh Zero-Balance Accounts Flagged As Suspicious, Banks Raise Concerns Over Misuse And ₹700 Crore Cost Burden
· Free Press Journal
Lucknow, April 3: A shocking revelation has emerged from Uttar Pradesh, where nearly 20 lakh Jan Dhan accounts across eight districts have been found with zero balance, raising serious concerns for banking authorities and the state government.
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Large number of inactive accounts flagged
According to a report submitted by banks, these accounts—spread across both eastern and western regions—have no money deposited at all. Officials noted that a significant number of these accounts belong to women, highlighting a gender dimension in financial inclusion efforts.
Risk of misuse in illegal activities
Banks have classified many of these inactive accounts as “suspicious” or potential “money mule” accounts. Such accounts can be misused for illegal activities like laundering money or routing funds from cyber frauds, especially when large sums are suddenly deposited and withdrawn.
Financial burden on banks
The issue is not just about inactivity but also about financial burden. Maintaining these zero-balance accounts is costing banks heavily, with estimates suggesting an annual expenditure of around Rs 700 crore to keep them operational, including IT infrastructure and staffing costs.
Questions over financial inclusion outcomes
Overall, Uttar Pradesh has over 10.22 crore Jan Dhan accounts, the highest share in the country, with deposits exceeding Rs 58,000 crore. However, the presence of such a large number of inactive accounts raises questions about the effectiveness and monitoring of financial inclusion schemes.
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The development has prompted authorities to review these accounts more closely, aiming to prevent misuse while ensuring genuine beneficiaries remain protected.