Indian Post Payments Bank To Charge Closure Fees On Savings Account | Details Here

Digital Savings Account: The account is closed in 12 months if KYC is not done. Under the new rules, Rs 150 + GST will be charged in such cases from March 5, 2022.

New Delhi: In a recent development, the Indian Post Payments Bank has released a notification regarding the change of rules in the savings account. According to a report by Economic Times, the IPPB will now charge Rs 150 + GST on the closure of the savings account. This rule will be applicable from March 5, 2022.

But there is a condition. The fees will be charged only if the account is being closed due to lack of KYC and has a tenure of more than one year. In digital savings accounts, it is mandatory to complete the KYC process within 12 months of opening the account.

The latest notification read, “This is to inform all concerned that India Post Payments Bank has introduced Digital Savings Bank Account closure charges of Rs. 150 + GST w.e.f. 5th of March 2022. The charges shall be applicable only in case the Digital Savings Bank (DGSB) account is closed at the end of one year period due to non updation of KYC.”

It must be noted that IPPB comes under the Indian Post Division of the Department of Post under the Government of India. Small savings banks have allowed people with less income to save money. They specialise in small deposits and also allow the facility of overdraft and debit cards.

What Is A Digital Savings Bank Account?

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