India Post on Thursday, 10 December, announced that PO saving accounts holder will be required to maintain a minimum balance of Rs 500 in their accounts. Failure to do this will result in a penalty of Rs 100 plus GST. The new minimum balance rule is effective from 11 December.
“In case account balance not raised to Rs 500 at the end of financial year Rs 100 will be deducted as Account Maintenance Fee and if account balance became Nil the account shall stand automatically closed,” stated India Post.
The minimum deposit amount should not be less than Rs 10 and there is no maximum limit for deposit. No withdrawal is permitted that reduces the minimum balance below Rs 500.
If there is no transaction in an account for consecutive three financial years, then the account shall be treated as silent or dormant. Fresh KYC documents, passbook are to be submitted along with an application form to revive such accounts.
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