The Central Government has directed public sector banks to close inactive Jan Dhan accounts if beneficiaries show no interest in reactivating them. This move comes after the government discovered that many of these accounts are being misused as mule accounts — used to store or transfer illicit funds, leading to rising cases of cyber fraud and money laundering.
As per new instructions, any Jan Dhan account with no transaction for 24 months is considered inactive and can be closed if the account holder fails to complete the mandatory Re-KYC process. The aim is to weed out accounts used for fraudulent activities and reduce cybercrime risks.
Officials stated that most dormant accounts are in rural regions. Banks have started contacting such account holders, offering them the opportunity to complete Re-KYC and reactivate their accounts. However, if users don’t respond, those accounts will be shut down permanently.
To combat rising misuse, the Reserve Bank of India has introduced an AI/ML-based initiative called “Mule Hunter”, developed under the RBI Innovation Hub. This model helps banks identify mule accounts involved in cybercrime and fund laundering. According to RBI data, 13,516 digital fraud cases were reported in FY 2025, with 56.5% (worth ₹520 crore) involving banking-related scams.
As of June 25, over 55.7 crore Jan Dhan accounts have been opened under the Pradhan Mantri Jan Dhan Yojana, with total deposits crossing ₹2.60 lakh crore. Of these, 31.06 crore accounts belong to women, and more than 37 crore accounts are in rural and semi-urban branches.
What You Should Do:
If you are a Jan Dhan account holder and haven’t used your account in the past two years, visit your bank branch or complete Re-KYC through available channels to keep your account active and avoid closure.
