The India Post Payments Bank is a division of India Post, which is owned by the Ministry of Post.
The India Post Payments Bank website states, “This is to inform all concerned that India Post Payments Bank has introduced a digital savings bank account closure fee of Rs. 150 + GST on 5 March 2022. Charges will only apply in the event The bank account (DGSB) is closed at the end of a one-year period due to not updating KYC.*”
According to the India Post Payments Bank website, “To enjoy unrestricted banking services, please upgrade your digital savings account to a regular savings account within one year by visiting any IPPB access point.”
Digital savings bank account
This account can be opened by anyone over the age of 18 who has an Aadhaar card and a PAN card. There is no obligation to maintain an average monthly balance and the account can be opened with a zero balance. The interest rate on the account will be 2.25% from February 1, 2022.
Key Points to Note About Digital Savings Account
- Within 12 months, the account holder must complete the KYC procedures.
- The digital savings account will be upgraded to a regular savings account once the KYC formalities are completed. These formalities can be completed at any access point (Post Office) or with the help of the GDS/Postman.
- The account allows a maximum annual cumulative deposit of Rs. 2,000,000.
- If the KYC is not completed within 12 months of account opening, the account will be closed.
- After completing KYC within 12 months, the digital savings account can be linked to a postal savings account (POSA). According to the notice issued by the IPPB, “the DGSB account holder can convert the account to SBREG (regular savings bank account) before one year by performing a re-KYC and enjoy many other features applicable to accounts SBREG”.
According to a notice issued by the IPBB on November 3, 2021, for a basic savings account, cash withdrawals, which are free for up to 4 transactions per month, will be charged at 0.50% of the subject value. of a minimum of Rs 25 per transaction, after the free limit is crossed. (Fees do not include GST/CESS which will be levied at applicable rates.)
According to the IPPB website, from 1 February 2022, the interest rate for savings accounts with balances of up to Rs 1 lakh will be 2.25%; for balances above Rs 1 lakh and up to Rs 2 lakh, the rate will be 2.50%.
