Here are five things to know:
1. While individuals can withdraw up to Rs 25,000 in cash in a day from an India Post or DoP ATM, a transaction limit of Rs 10,000 is applicable, according to the India Post website. That means the maximum cash that one can withdraw in a transaction carried out at a post office ATM is Rs 10,000.
2. India Post, however, did not mention the charges applicable beyond any transaction after the five free transactions in a day.
3. The Department of Posts allows three free transactions in a month from its debit card when used at ATMs of other banks in metro cities, according to the India Post website.
4. In non-metro cities, the upper limit for free transactions is five, it mentioned. In metros as well as non-metro cities, the prescribed limits are inclusive of financial and non-financial transactions.
5. At other banks' ATMs, any transaction beyond the prescribed number of free transactions will be chargeable at Rs 20 plus applicable GST, according to India Post.
|Daily ATM cash withdrawal limit||Rs 25000/-|
|Cash withdrawal limit per transaction||Rs 10000/-|
|Charges for transactions done at DOP ATMs||Free (Both Financial & Non Financial) with a limit of 5 Financial transactions per day|
|Permissible free transactions at other Bank ATMs (per month)||Metro Cities - 3 free transactions (Both Financial & Non Financial)|
|Non Metro Cities - 5 free transactions (Both Financial & Non Financial)|
|Charges after exceeding permissible free transaction limit at other Bank ATMs||Financial & Non Financial Transactions - Rs 20 + Applicable GST|
India Post in January 2017 launched its payments bank, called India Post Payments Bank (IPPB). Aimed at financial inclusion, payments banks offer limited banking services such as savings accounts. For instance, payments banks - such as India Post Payments Bank - can issue ATM or debit cards but are not permitted to issue credit cards, according to the RBI.
Among other services, the Department of Posts offers savings bank accounts. These savings accounts can be held with or without a cheque book facility. India Post also offers the facility to transfer savings accounts from one post office branch to another, according to its website.
Meanwhile, around 34 crore post office savings account holders will be able to avail a full-fledged digital banking service from next month, news agency Press Trust of India reported. The agency said the government had approved linking of such accounts with those of India Post Payments Bank (IPPB).
"The finance ministry has approved linking of savings bank accounts at post offices with IPPB accounts. This will enable post office account holders to transfer money from their account to any bank accounts...," the news agency said citing an official source.