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India Post: Post Office Payments Bank to charge closure fees on savings account, check all details here

Recently, the India Post Payments Bank released a notification that they will be charging a certain amount on the closure of a savings account. First reported by the Economic Times, the IPPB will now charge Rs 150+GST on the bank account closure. This rule will come into place on March 5, 2022.

This will be only charged if the account is being closed due to lack of KYC and his tenure of more than one year. In a digital savings account of the Post Office, it is compulsory to complete the KYC process within 12 months of opening the account.

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The latest notification read, “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.”

The IPPB is under the Department of Post which is a government body. Small savings banks have allowed people with lower incomes to save money. They specialize in small deposits and also offer the facility of overdraft and debit cards.

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What Is A Digital Savings Bank Account?

  • This type of account can be opened by citizens who are above 18 years of age. All they need is a PAN card and Aadhar card to open the account.
  • There is no minimum balance for such accounts, according to a report by Economic Times
  • For a balance of Rs 1 lakh to 2 lakh, the interest rate is 2.5%, and for a balance below Rs 1 lakh, the interest rate is 2.25%.
  • The KYC process must be completed under 12 months of opening the digital savings account.
  • After the KYC is done, the digital account can be converted into a regular savings account.
  • You can deposit up to Rs 2 lakh in the digital savings account.
  • If the KYC is not done within 12 months, the account is closed and the account holder will have to pay Rs 150+GST for the same.

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