Changes in ATM withdrawal limits and charges for Post Office Savings Account

Important details regarding cash withdrawal rules and charges via ATM for customers holding a Post Office Savings Account (POSA) have been announced. According to a report by TV9 Gujarati, as per the rules of the Department of Posts, a maximum of ₹25,000 in cash can now be withdrawn in a single day using the ATM card of a post office savings account. However, along with this daily limit, a per-transaction limit has also been set at ₹10,000.

This rule means that if a customer wishes to withdraw ₹25,000 in one day, they will have to perform separate transactions. For example, a customer can complete their daily limit by withdrawing ₹10,000 the first time, ₹10,000 the second time, and ₹5,000 the third time. It is not possible to withdraw an amount exceeding ₹10,000 in a single transaction.

It is also mandatory to maintain a minimum balance in the account while using the ATM facility. According to the rules, it is compulsory to have a balance of at least ₹500 in the account after withdrawing money from an ATM. If a customer attempts to withdraw more than the available amount in the account, the transaction may be rejected. Additionally, there are strict rules regarding maintaining the minimum balance. If the balance in the account is less than ₹500 on the last day of the financial year, i.e., March 31, a maintenance charge of ₹50 may be deducted from the account.

Different criteria have been set for free transaction facilities at Post Office and other bank ATMs. If a customer uses the Department of Posts' own ATM, they are provided 5 free financial and non-financial transactions per month. When other banks' ATMs are used, the limit depends on the type of city. In 6 metro cities, there is a limit of 3 free transactions per month, while in non-metro cities, 5 free transactions can be made per month. These free transactions include both financial tasks such as cash withdrawal and non-financial transactions such as checking balance or printing a mini statement.

Additional charges will have to be paid after the prescribed free limit is exhausted. According to the rules applicable from November 1, 2025, after the free limit is exhausted at other bank ATMs, ₹23 plus GST will have to be paid for every additional financial transaction. Similarly, a charge of ₹11 plus GST will apply for non-financial transactions such as checking the balance. Therefore, it will be more beneficial to withdraw cash together as per requirement instead of visiting the ATM frequently.

The method of calculating interest in a Post Office Savings Account is also specific. Interest on the amount deposited in the account is calculated based on the minimum balance present in the account during the period from the 10th of every month to the last day of the month. Interest calculated in this manner is credited to the account once a year. Customers should note that withdrawing a large amount during the month affects their minimum balance, which can ultimately affect the interest amount.

In the entire process, it is necessary for customers to keep five main points in mind: not to attempt to withdraw more than ₹25,000 daily, to understand the maximum limit of ₹10,000 per transaction, to always maintain a minimum balance of ₹500 in the account, to keep track of the free ATM transaction limit provided every month, and to be aware of the additional charges applicable after the free limit is exhausted. The ATM facility in the Post Office Savings Account provides quick access to funds, but following these rules can help avoid unnecessary charges.