Indian Post Payments Bank to charge savings account closing fee

New Delhi: In a recent development, the Indian Post Payments Bank has issued a notification regarding the change in savings account rules. According to a report by Economic Times, the IPPB will now charge Rs 150 + GST ​​on closing the savings account. This rule will be applicable from March 5, 2022.Also Read – PF Account: How to Check PF Account Balance?

But there is one condition. Fees will only be charged if the account is closed due to lack of KYC and has a duration of more than one year. In digital savings accounts, it is mandatory to complete the KYC process within 12 months of account opening. Also Read – Good News for Policyholders: LIC Allows Customers to Reactivate Lapsed Policies and Offers Concession on Late Fees

The latest notification read, “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 5th March 2022. The fee will only be applicable if the Digital Savings Bank (DGSB) account is closed at the end of a one-year period due to not updating KYC. Also read – Banking alert: major change in banking rules for SBI, PNB, BoB and ICICI customers from February. Details here

It should be noted that the IPPB falls under the Indian Post Division of the Postal Department, Government of India. Small savings banks enabled low-income people to save money. They specialize in small deposits and also allow the installation of overdraft and debit cards.

What is a digital savings account?

  • The digital savings account can be opened by people over the age of 18, but they must have an Aadhar card and a PAN card.
  • According to ET, there is no minimum balance requirement in these accounts.
  • The interest rate offered is 2.25% for a balance below Rs 1 lakh, the report adds.
  • For a balance between Rs 1 lakh and Rs 2 lakh, 2.5% interest is offered.
  • The KYC procedure must be completed within 12 months of opening the digital savings account.
  • After KYC, a digital savings account can be transformed into a regular savings account.
  • A total annual deposit of Rs 2 lakh is allowed in the digital savings account.
  • The account is closed in 12 months if the KYC is not done. Under the new rules, Rs 150 + GST ​​will be charged in such cases from March 5, 2022.