For its savings account customers, post office has increased the minimum balance requirement from Rs. 50 to Rs. 500. And in a case when the customer fails to comply with this new ruling, on the last day of the financial year Rs. 100 shall be deduced as maintenance fee.
So, accordingly all of the post offices have been asked to connect with savings accounts customers and has asked them to maintain a minimum balance of Rs. 500, failing which department of post will deduct a penalty to the tune of Rs. 100.
Further, in a case when upon deduction of this penalty amount, the balance in savings account is zero, the savings account will automatically see closure.
Because of this minimum balance stipulation of just Rs. 50, post offices on an annual basis are losing close to Rs. 2800 crore annually.
Currently, savings account at post office fetches 4% while to keep the account active there is needed at least one withdrawal or deposit transaction in 3 years time.