India Post Bank Implements AePS Service Fees

India Post Payments Bank (IPPB) introduced AePS service charges in June 2022, impacting customers who rely on this bank-agnostic financial inclusion service. While AePS offers convenience, recent changes have reduced the number of free transactions and increased service fees.

Changes to AePS Service Charges

• Free Transactions Reduced: Previously, IPPB account holders enjoyed three free monthly AePS transactions (cash withdrawal, cash deposit, or mini statement) for each category. Now, only the first three cumulative transactions (across all categories) are free each month. This means that even a single cash withdrawal, deposit, or mini statement request consumes one of the free transactions.
• Increased Transaction Fees: After the free quota is exhausted, each AePS cash withdrawal or deposit incurs a fee of Rs. 20 plus GST. Similarly, mini statement requests cost Rs. 5 plus GST. These charges can add up quickly for users who rely heavily on AePS for everyday banking needs.

Impact on Customers

The revised AePS charges might disproportionately affect low-income users in rural areas who depend on frequent, small-value transactions. While IPPB offers alternative channels like mobile banking (currently facing temporary limitations) and doorstep banking, AePS remains a popular option due to its wider reach and functionality even in areas with limited internet connectivity.

Services Provided by AePS

• Banking Services:
  • Cash Deposit
  • Cash Withdrawal
  • Balance Enquiry
  • Mini Statement
  • Aadhaar to Aadhaar Fund Transfer
• Authentication:
  • BHIM Aadhaar Pay
• Other Services:
  • eKYC
  • Best Finger Detection
  • Demographic Authentication
  • Tokenization
  • Aadhaar Seeding Status

IPPB NEFT/RTGS Transactions

For customers seeking electronic bank transfers, IPPB offers NEFT (National Electronic Funds Transfer) and RTGS (Real-Time Gross Settlement) facilities through a sub-membership agreement with the Department of Post (DoP).

• Dedicated IFS Codes:
  • IPOS0000DOP: Exclusively for transactions in DoP Customer accounts.
  • IPOS0000001: For inward transactions to IPPB accounts.
  • IPOS0000DOP: For Post Office Savings Account (POSA) accounts in DoP. (Ensure accurate beneficiary account numbers, as IPPB and POSA account numbers may have similar structures in some branches.)

Important to Note

The revised AePS charges, while offering a small buffer with the initial free tier, can have a significant impact on users who heavily rely on AePS for daily banking activities. Carefully consider your banking habits and explore alternative channels offered by IPPB, like mobile banking (once limitations are addressed) or doorstep banking, to minimize extra charges and manage your finances effectively.

By staying informed about these changes and exploring alternative options, IPPB account holders can make informed decisions to manage their banking needs efficiently.

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