India Post, the government-employed postal system of India, has reportedly requested its savings bank account holders to make away with their existing magnetic ATM cards and replace it with the new EMV chip-enabled ATM cards.
India Post notified that the account holders are required to update their mobile numbers and replace their ATM cards by 31 January 2020. Failure to do so before the end of the month will result in the existing cards being blocked.
The Post Office Savings Bank account holders can replace their existing cards and update their mobile numbers by approaching their home branch.
India Post issued a notification on its official website that read “POSB customers are requested to replace their existing Magnetic ATM cards with more secure EMV chip-enabled ATM cards and get mobile number updated before 31/01/2020 by visiting your home branch to avoid blocking of your cards”.
Individuals can open a savings bank account by visiting any post office across the country. A savings bank account can be opened with deposits as less as Rs.500. Also, the deposits will be required to be made in cash. Account-holders are also offered a fixed interest rate of 4% p.a. on their deposits.
The maximum amount an account holder can withdraw with the new EMV-enabled ATM card is Rs.25,000 a day. Account-holders can withdraw only a maximum amount of Rs.10,000 at once.
Also, customers are not charged with transaction fees if withdrawn from the Department of Post ATMs. While the number of free transactions from other bank ATMs in non-metro cities has been limited to five transactions, the number of free transactions in metro cities have been restricted to only three.
Once the permitted free transactions have been exhausted, account holders will be charged Rs.20 for every transaction made at other bank ATMs.