If your savings account (Saving Account) is in India Post Payments Bank (IPPB), then this news is for you. The IPPB has proposed to charge in a circular on cash deposit, cash withdrawal and Aadhaar Enabled Payment System (AEPS) transactions from 1 April.
Charges will be applicable to both cash deposits and withdrawals only when the free limit limit is exhausted. This means that you have to pay the charge only when you cross the limit of free transaction in a month.
Charge transactions are based on two methods – Cash transaction and AePS transaction. A scheduled transaction is free in a month. In addition, a deposit or withdrawal of cash in excess of a certain amount in a month will be charged.
If you have a Basic Savings Account with India Post Payment Bank, then withdrawal is free 4 times every month. After that, a minimum of 25 rupees or 0.50 per cent of the total value will be deducted on every transaction. There will be no charge for depositing money in the Basic Savings Account.
If there is a savings (other than basic savings account) or current account, then cash withdrawal up to Rs 25,000 thousand is free in a month. After the free limit, 0.50 percent of the total value or at least Rs 25 per transaction will have to be charged.
Savings (other than Basic Savings Account) and Current Account, then a cash deposit of up to Rs 10,000 is free each month. After the free limit, 0.50 per cent of the total value or a minimum of Rs 25 per transaction will be charged.
In the case of Aadhaar based AEPS transaction, any number of transactions can be done on India Post Payment Bank’s network and it is completely free. Three transactions a month are free on non-IPPB networks. This includes depositing cash, withdrawing and withdrawing mini statements.
After the free limit is completed, all transactions will be charged Rs 20 for depositing the cash. The transaction charge is Rs 20 even on withdrawals. The charge to withdraw the mini statement is 5 rupees. On transferring funds after the free limit, 1% of transfer charge transaction amount, maximum Rs. 20 will be minimum Rs. 1. GST is not included in the above-mentioned charges.