India Post Payments Bank Announces Savings Account Closure Charges: Details Inside

The India Post Payments Bank (IPPB) has announced a Rs 150 + GST fee for closing a digital savings account, which will take effect on March 5, 2022. The charges will only apply if the Digital Savings Bank (DGSB) account is closed at the completion of the one-year period owing to a failure of KYC compliance. In a notice issued on 02-02-2022, IIPB has said that "This is to inform all concerned that India Post Payments Bank has introduced Digital Savings Bank Account closure charges of Rs. 150 + GST w.e.f. 5th of March 2022. The charges shall be applicable only in case the Digital Savings Bank (DGSB) account is closed at the end of one year period due to non-updation of KYC."

If the KYC is not fulfilled within 12 months after account establishment, the Digital Savings Bank (DGSB) account will be closed. You must upgrade your Digital Savings Account to a Regular Savings Account within one year by visiting any IPPB access point to enjoy unlimited banking services. Customers should complete their complete KYC within a year as a consequence and failing to do this will make their account non-KYC compliant which would result in the account being closed.

According to IPPB "Customer can visit the nearest Post Office for re-KYC to avoid Digital Savings account closure charges. The DGSB account holder can convert the account to SBREG (Regular Savings Bank Account) before one year by doing re-KYC and enjoy many more features applicable to SBREG accounts."

Customers of IPPB should also be aware that, beginning of February 1, 2022, the bank's interest rates on all saving account variants have been altered. This interest rate will be calculated on the daily end-of-day (EOD) balance and paid to the customer quarterly. India Post Payments Bank has said on its website that "This is to inform all the concerned that India Post Payments Bank has revised its interest rate on all the customer variants of Savings Accounts as per the Asset Liability Committee approved policy effective from 1st February 2022, as per below table:"

Savings Bank Deposit Slabs	Current Interest Rate	Revised Interest Rate
Balances up to ₹ 1 lakh	2.50% p.a.	2.25% p.a.
Incremental Balances above ₹1 Lakh & up to ₹2 Lakh	2.75% p.a.	2.50% p.a.