India Post Payments Bank (IPPB) will levy a charge on cash withdrawals and deposits from January 1, 2022.
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How It Will Work
The charges will be imposed on account holders who have exceeded the prescribed limit of making cash withdrawals and of depositing cash in their accounts.
The actual fee will be calculated after taking into account the GST or CESS which will be levied at the applicable rates.
Types Of Accounts
IPPB has three kinds: Regular, Digital and Basic savings accounts.
One can open these savings accounts with zero balance.
Interest rates are as follows:
- Balance up to Rs 1 lakh: 2.50%
- Balance above Rs 1 lakh and up to Rs 2 lakh: 2.75%
Basic Savings Account
For Basic Savings Account, the prescribed limit for cash withdrawal is up to 4 transactions per month.
After this is exceeded, withdrawal charge of 0.50% of the value subject to minimum Rs. 25 per transaction will be applicable.
However, cash deposits up to any amount will remain free for this account.
Savings (other than Basic SA) & Current Accounts: Cash withdrawal
For Savings (other than Basic SA) and Current Accounts, cash withdrawal will be free up to Rs. 25,000 per month.
Post the free limit, a charge of 0.50% of the value subject to minimum Rs. 25 per transaction will be levied.
Savings (other than Basic SA) & Current Accounts: Cash deposit
Cash deposits will be free up to Rs.10,000 per month.
Post free limit, a charge of 0.50% of the value subject to minimum Rs. 25 per transaction will be levied.
Banking With QR Code
A unique feature offered to IPPB account holders is banking with QR codes.
This is helpful to customers since they no longer need to remember the account number or any password to undertake banking activities.
Instead, the authentication will be done using the customer’s biometrics.
The bank also offers funds transfer modes of NEFT, IMPS, RTGS.