Post Office Savings Accounts: Do you know the rules for verifying large amount withdrawals?

Like a bank savings account, one can also open a savings account at a post office. Recently, the Post Office Department changed the cash withdrawal rules. This is applicable for large value withdrawal of 10,000 or more. In a circular dated August 25, the Ministry of Communications had stated that for the withdrawal of High Value Withdrawal from 10,000 and above in branch post office savings accounts, verification is required.

He said verification of withdrawals of Rs 10,000 and above at single handed post offices has been removed and verification is only mandated for withdrawals relating to branch post offices, see Ordinance SB No. 9/2018 of 17.07.2018. (ii). However, in the latest POSB CBS Handbook (corrected through 12.31.202L), a note was added under Rule 64 as follows.

“It will be the particular responsibility of Circle Leaders to ensure that all preventive measures/verifications are exercised meticulously and that every effort is made to nip fraud in the bud. Circle leaders are also free to design any other particular checks they wish to carry out in light of local circumstances,” the notification reads.

The purpose of this verification was to minimize incidents of bank fraud.

“However, the overall effort should be to minimize the incidence of SB fraud and tone down divisional administrations. as a preventative measure to minimize the incidences of savings bank fraud,” the Post Office Department said.

Meanwhile, India Post has increased the withdrawal limit for its customers. In line with the new change made by India Post, account holders can now withdraw up to 20,000 per day in Gramin Dak Seva branch. Previously, the withdrawal limit was 5,000.

Postal Savings: Minimum balance

Note that an interest rate of 4% is granted on the Postal Savings Plan. Account holders should be aware that they must maintain a minimum balance of 500 to the postal savings account. However, if the minimum balance is less than 500, then 100 will be deducted as an account maintenance fine.

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