Post office savings scheme withdrawal rule revised: Key things to know

The Department of Post (DoP) has changed the cash withdrawal rules of post office savings account. This is applicable for high value withdrawal of Rs 10,000 and above. In a circular, the Ministry of Communications stated that for withdrawal of high value withdrawal of Rs 10,000 and above in savings accounts at branch post offices, verification is needed.

The verification procedure has been eliminated for more withdrawals in single-handed post offices.

Such regulations have been implemented in order to stop postal banking fraud.

"It will be the special responsibility of the Heads of Circle to see that all the preventive measures/checks are exercised meticulously and every effort made to nip frauds in the bud. The Heads of Circles are also free to devise any further special checks they want to carry out in the light of local circumstances," the notification said.

In another development, India Post has increased the withdrawal limit for its customers. The account holders can now withdraw up to Rs 20,000 in a day in the branch of Gramin Dak Seva. Earlier, the withdrawal limit was Rs 5,000.

The post office currently offers 4 percent interest per annum on individual/joint savings accounts. The minimum balance to be maintained in a saving account is Rs 500. If this balance of Rs 500 is not maintained, a maintenance fee of Rs 100 is deducted from the account on the last working day of each financial year and after deduction of the account maintenance fee, if the balance in the account becomes nil, the account stands automatically closed.

Post office savings account can be opened by single adult, jointly by two adults, a guardian on behalf of minor, a minor above 10 years in his own name.

Only one account can be opened in the name of minor/above 10 years of age (self)/person of unsound mind. In case of death of a joint holder, the surviving holder will be the sole holder, if surviving holder already has single account in his/her name, joint account have to be closed.

Conversion of single to joint account or vice versa is not allowed. Nomination is mandatory at the time of opening of account. Minor after attaining majority has to submit fresh account opening form and KYC documents of his/her name at concerned post office for conversion of the in his/her name.