Holding savings account in this bank? Get ready to pay on cash deposit, withdrawal from April 1 : 15-03-2021

If you are holding a savings account in the India Post Payments Bank (IPPB), this news is for you. IPPB, in a circular, has proposed to introduce charges on cash deposit, cash withdrawal and Aadhaar Enabled Payment System (AEPS) transactions from April 1. The charges will apply on both cash deposits and withdrawals only when the free limits has been exhausted. So, it means, you will have to pay charges only if you have exceeded the number of free transactions allowed in a month.

The charges are based on the two modes of transactions – Cash transactions and AePS transactions. There will be a certain number of transactions that will remain free in a month. Also, a charge will be applied on exceeding a certain amount of cash deposit and withdrawal in a month.

Basic Savings Account

Cash Withdrawal: Free up to 4 transactions per month; Post free limit, 0.50% of the value subject to minimum Rs. 25 per transaction.

Basic Savings Account: Cash Deposits will remain free

Savings (other than Basic Account) & Current Accounts: Cash Withdrawal free, up to Rs. 25000 per month;
Post-free limit, 0.50% of the value subject to minimum Rs. 25 per transaction.

Savings (other than Basic Account) & Current Accounts: Cash Deposits Charges free, up to Rs. 10000 per month; Post-free limit, 0.50% of the value subject to minimum Rs. 25 per transaction.

IPPB AePS Transaction charges

  • Free Limit for AePS transactions
  • Free Unlimited transactions over IPPB network (Acquirer transactions): Non-IPPB customer served by IPPB network
  • Up to 3 Transactions over Non-IPPB Network (Issuer Transactions) per month (including AePS Cash Deposit, Withdrawal and Mini-Statement): IPPB Customer transacting on other Network.
  • AePS Cash Deposit- Post free limit, Rs. 20 per transaction.
  • AePS Mini Statement- Post-free limit, Rs. 5 per transaction.
  • AePS Fund Transfer- 1% of transaction amount subject to a minimum of Rs. 1 and maximum of Rs. 20 per transaction
  • Aadhay Purchase Pay- Free

The above IPPB charges are exclusive of GST/ CESS which will be levied at the applicable rates.

As per the guidelines for Payment Banks, they cannot accept deposits of more than Rs 1 lakh from one account holder and are not allowed to lend money. However, they may provide all other services such as ATM card, fund transfer, bill payments, recharges, net banking etc to the account holders.

Currently, the types of savings account that can be opened in India Post Payments Bank (IPPB) are – Regular savings account, a Basic Savings Bank Deposit Account (BSBDA) and the Digital Savings Account. A unique feature of India Post Payments Bank savings account is its ‘ banking with QR card’. One can also avail funds transfer modes of NEFT, IMPS, RTGS through IPPB Mobile Banking App or through IPPB Assisted Mode.

Source : Financial Express

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