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Home / Money / Personal Finance /  Post Office savings accounts: Are you aware of verification rules for cash withdrawals?
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Like a bank savings account, one can also open a savings account with a post office. Recently, the Department of Posts changed the cash withdrawal rules. This is applicable for high value withdrawal of 10,000 and above.  In a circular dated 25 August, the Ministry of Communications had stated that for withdrawal of High Value Withdrawal of 10,000 and above in Savings Accounts at Branch Post Offices, Verification is needed. 

It said that the verification of withdrawals of Rs10,000 and above at Single Handed Post Offices has been dispensed with and verification is prescribed only for the withdrawals in respect of Branch Post Offices, vide SB Order No. 9/2018 dated 17.07.2018. (ii). However, in the latest POSB CBS Manual (corrected up to 31.12.202L), a note has been added under Rule 64 as follows. 

“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," read the notification.

The whole purpose of this verification was to minimise the incidents of banking fraud.

“However, the overall endeavour should be to minimise the incidence of SB frauds and tone up the Divisional Administrations. Accordingly the Heads of Circle are free to devise any special check(s) they want to carry out in the light of local circumstances as preventive measure to minimise the incidences of Savings Bank frauds," the Department of Posts said.

Meanwhile, the India Post has increased the withdrawal limit for its customers.  As per the new change brought by the India Post, now the account holders can withdraw up to 20,000 in a day in the branch of Gramin Dak Seva. Earlier, the withdrawal limit was 5,000.

Post Office Saving Scheme: Minimum balance

It must be noted that 4% interest is given on the Post Office Saving Scheme. The account holders must know that they need to keep a minimum balance of 500 in the Post Office saving scheme account. However, if the minimum balance is less than 500, then 100 will be deducted as account maintenance fine.

 

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