The income tax department said on Wednesday that there has been a considerable reduction in inflows into the Jan Dhan or no frill accounts after the government warned bank account holders to not allow misuse of their accounts.

“Since the time the Government has alerted people not to allow their accounts, particularly Jan Dhan accounts, to be used by others for the purpose of converting their black money, there has been a considerable decrease in the inflow of funds in Jan Dhan accounts,” said a statement by the tax department.

The department pointed out that how after the initial surge in the first two weeks since demonetisation, the deposits have slowed down. “The average per account deposit in Jan Dhan accounts is Rs13,113 for this entire period from 8 November to 2 December, which is not alarming, given the need to bring all cash to banks,” the statement added.

Warning those who are misusing these accounts, the department said it has identified the local clusters and bank branches where the inflow of Jan Dhan deposits have been more than normal and is investigating such deposits.