Over one lakh India Post ATM cards issued in Karnataka, get popular after banks hike fees

You probably didn’t know this. You can bid goodbye to hefty bank transaction fees. All it will cost you is Rs 50.

With private and public sector banks, including SBI, hiking minimum balance and transaction fees, Post Office Savings Bank (POSB) comes to your rescue. Opening a savings account, which comes with an ATM card, costs no more than Rs 50 and India Post has so far issued over one lakh ATM cards in Karnataka. Currently, it has 76 ATM counters in the state, including 14 in Bengaluru alone.

A minimum deposit of Rs 500 for cheque book, unlimited transactions at India Post branches and ATMs with a maximum withdrawal limit of Rs 25,000 per day is certainly good news.

This is in sharp contrast to public sector and private banks insisting on a minimum balance of more than Rs 5,000, limited free transactions, heavy transaction fees and hidden charges. India Post is also planning to launch the internet and mobile banking shortly.

“We are getting an overwhelming response for POSB especially after banks, including SBI, recently hiked transaction fees and other charges. We have distributed more than 50,000 ATM cards in the state over the last five months. Our account holders can also withdraw money from any bank ATMs,” said a senior official of India Post (Karnataka Circle).

Across the country, 23,292 post offices have been migrated to Core Banking Solution and a total of 970 ATMs are operational. India Post is also planning to increase the number of ATMs and banks to attract more people.

Many regular bank customers are also happy. “SBI insists that savings bank account customers in metros should maintain a monthly balance of Rs 5,000. Otherwise, they will impose fines ranging from Rs 50 to Rs 100 (plus service tax). SBI also doesn’t allow unlimited cash withdrawals from their ATMs. It’s not possible to maintain a minimum of Rs 5,000 from my monthly salary. So I’ve decided to close the SBI account and to start an account in India Post bank,” said S Manjunath, a delivery boy in Koramangala.

“We will set up more ATMs at our post office premises in the coming years. We have a presence in every nook and corner of the country. So customers can avail banking services from any of our postal banks without any additional charges,” the official said.

Under Rural Information Communication & Technology (RICT) project, India Post has also started a doorstep banking to provide services like cash deposit, cash withdrawal and balance enquiry. “We have started a pilot project in Channapatna and will extend it to all rural areas of the state. This facility is useful to senior citizens and differently-abled people who cannot visit post offices,” the official added.