Cash withdrawals from a post office account has been restricted to only four transactions, according to the most recent India Post update. If you make more than four withdrawals, you will be charged 0.05 percent of the balance on each transaction that exceeds the cap. India Post recently declared that the withdrawal cap at Post Office GDS (Gramin Dak Seva) branches will be increased in order to deliver comfort to Post Office Savings account holders. Thus the withdrawal cap per person has been increased from Rs 5,000 to Rs 10,000. In her recent tweet Sitharaman said that "Interest rates of small savings schemes of GoI shall continue to be at the rates which existed in the last quarter of 2020-2021, ie, rates that prevailed as of March 2021. Orders issued by oversight shall be withdrawn." Which means that the post office savings account will continue to fetch an interest rate of 4% for the quarter ending in June 2021.
Cash Deposit, Withdrawal Rules For Post Office Savings Account Holders (w.e.f. April 1, 2021)
- After the most recent update the withdrawal cap at Post Office GDS (Gramin Dak Seva) Branches has been increased from Rs 5,000 to Rs 20,000.
- A branch postmaster (BPM) will not approve a cash deposit transaction in an account exceeding more than Rs 50,000 in a single day. Furthermore, until the Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), Monthly Income Scheme (MIS), Kisan Vikas Patra (KVP), National Savings Certificate (NSC) schemes are made accessible in the RICT CBS App, deposits in these accounts can only be made using a withdrawal form or a cheque.
- If presented at a Core Banking enabled (CBS) Post Office, all PosB cheques released by any CBS Post office will be considered as at par cheques and will not be released for clearing.
- In a single day, no cash transactions of more than Rs 50,000 are permitted at other SOLs in an account.
- The minimum required amount to maintain a savings account at a post office is Rs 500, and if the minimum cap is not fulfilled, an account maintenance charge of Rs 100 will be deducted from the account.
- No charges are applicable for withdrawing cash from a basic savings account up to four times per month. Following that, each transaction will incur a fee of Rs 25 or 0.50 percent of the total amount withdrawn. When depositing cash, however, you will not be charged any fee. You can deposit any amount without incurring any additional fees.
- Withdrawing Rs 25,000 monthly from a savings or current account will incur no charges. Following that, each withdrawal will be subject to a minimum fee of Rs 25 or 0.5 percent of the total amount withdrawn. There is no fee if you make a cash deposit of up to Rs 10,000 in a month. A deposit of more than that amount, however, will charge a fee of minimum of Rs 25 in a post office savings account deposit.
- You will also be charged a fee for using the Aadhaar Enabled Payment System. Although IPPB (India Post Payment Banks) networks offer unlimited free transactions, non-IPPB networks only offer three free transactions every month. This covers cash deposits, withdrawals, and mini statements. After the free cap in AePS has been reached, each transaction will require a fee. All transactions will cost Rs 20 if you deposit cash after the cap has been reached. Withdrawing cash also incurs a fee of Rs 20. You must pay Rs 5 to get a mini statement as well.
- If funds are transferred after the cap has been reached, a fee of 1% of the transaction amount, with a minimum of Rs 1 and a maximum of Rs 20 will be charged. These fees will be subject to GST and Cess.