India Post services its customers through nearly 17 crore post office savings accounts. The government plans to link over 1.5 lakh post offices with India Post Payments Bank by the end of this year. Linking of the post office savings account with the India Post Payments Bank account will help an account holder to avail more services. India Post Payments Bank has been set up under the Department of Post with 100% equity owned by the government. India Post Payments Bank will provide basic financial services through savings accounts, money transfers, and payments services such as social security payments and utility bill payments.
1) To link a post office savings account with India Post Payments Bank, the account holder has to open a regular savings account with India Post Payments Bank. Individuals above 10 years of age with valid KYC documents are eligible to open a regular savings account with India Post Payments Bank.
2) A regular savings account with India Post Payments Bank can be opened with zero balance. Also, there is no requirement for maintaining any monthly average balance. India Post Payments Bank savings accounts offer the facility of unlimited cash deposits, subject to some limits, and withdrawals.
3) A payments bank savings account, according to an RBI mandate, however cannot hold more than ₹ 1 lakh. If funds in an India Post Payments Bank savings account exceed ₹ 1 lakh, the excess deposit beyond ₹ 1 lakh, can be transferred to the account holder’s linked India Post Office Savings Account. Or in other words, the day-end balance above ₹ 1 lakh can be swept into the linked post office savings account.
4) If you don’t have a linked post office savings account, the India Post Payments Bank savings account will be restricted to ₹ 1 lakh at the end of the day. Any transaction beyond this limit will not be accepted.
5) India Post Payments Bank has collaborated with the Department of Posts for opening a post office savings account, which will be linked to the India Post Payments Bank account.