Banks ordered to close inactive accounts under PM Jan-Dhan Yojana

The Indian government has instructed state-owned banks to close inactive accounts opened under the PM Jan-Dhan Yojana program due to concerns over misuse by fraudsters as "mule accounts" for cyber fraud. Banks are advised to initiate re-KYC procedures to reactivate inoperative accounts, but if beneficiaries are unwilling, such accounts will be closed. The move comes amid rising instances of fraud in the digital payments category.