Economy

India Post Payments Bank revises cash withdrawal charges from January 1

Cash withdrawals, which are free up to 4 transactions per month for a basic savings account, will be taxed at 0.50 percent of the value, subject to a minimum of Rs 25 each transaction, if the free limit is exceeded, according to an IPBB notice dated November 3, 2021.

The India Post Payments Bank (IPBB) has changed the fees for cash withdrawals and deposits at its branches as of January 1, 2022. The India Post Payments Bank is a subsidiary of the Indian Postal Department, which controls it.

According to an IPBB notice dated November 3, 2021, cash withdrawals, which are free up to 4 transactions per month for a basic savings account, would be charged at 0.50 percent of the value, subject to a minimum of Rs 25 per transaction, if the free limit is surpassed. (GST/CESS is not included in the charges and will be applied at the applicable rates.) Cash deposits, on the other hand, are completely free of charge.

Withdrawals from savings and current accounts (other than Basic SA) are free up to Rs 25,000 per month. “After the free limit, 0.50 percent of the value subject to a minimum of Rs. 25 every transaction,” according to the IPPB notice.
“After the free limit, 0.50 percent of the value, subject to a minimum transaction value of Rs. 25.” “After the free limit, 0.50 percent of the value, subject to a minimum transaction value of Rs. 25.”

Savings accounts at IPPB

Regular, digital, and basic savings accounts are available from the IPPB. The interest rates on these accounts are as follows:

On amounts up to Rs 1 lakh, the interest rate is 2.50 percent.

On balances of exceeding Rs 1 lakh and up to Rs 2 lakh, the interest rate is 2.75 percent.

You can open these savings accounts with no money in them.

At the post office, you can open a savings account.

A post office savings account works similarly to a bank savings account in that the post office pays interest on the money in the account. An account can only be opened with cash, with a minimum of Rs 20 and no maximum limit. A non-cheque facility account requires a minimum balance of Rs 50. To use the cheque feature, you must have a minimum balance of Rs 500. The annual rate of interest on these savings accounts is 4%.

The Department of Posts notified in a circular dated September 15, 2021 that it has implemented various charges on ATM cards that would take effect on October 1, 2021. A monthly limit on the number of financial and non-financial transactions that can be made at ATMs has also been enforced by the Department. Go here to learn more.

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