Post Office Revises ATM Charges: Free Transactions Limited, Additional Fees After Threshold
The Department of Posts has announced new transaction rules and charges for Post Office ATM cardholders, effective immediately. Under the revised structure, customers will be entitled to a limited number of free transactions each month, after which additional fees will apply. The changes aim to align the Post Office’s banking operations with those of commercial banks and to support the maintenance and security of ATM services.
As per the latest notification, Post Office ATM cardholders can now use other banks’ ATMs for up to three free transactions per month in metro cities and five free transactions in non-metro cities. Once this limit is crossed, users will be charged:
₹23 plus GST for each financial transaction (such as cash withdrawal)
₹11 plus GST for each non-financial transaction (such as balance inquiry or mini-statement)
This structure mirrors the Reserve Bank of India’s guidelines, which allow banks to charge customers after the prescribed free limit.
For those using Post Office ATMs, there has been no change in the existing fee structure. Customers will continue to enjoy five free financial or non-financial transactions per month. After these, the applicable charges will be:
₹10 plus GST per financial transaction
₹5 plus GST per non-financial transaction
This consistency ensures that customers using Post Office-owned ATMs continue to benefit from affordable services compared to using other bank ATMs.
The revised charges will primarily affect customers who frequently withdraw cash or use ATMs for non-financial activities, such as balance checking. Experts suggest that these users may see an increase in their monthly banking expenses if they exceed the free transaction limits.
However, the fee revision is intended to cover operational costs, including system upgrades, ATM network maintenance, and enhanced cybersecurity measures. By balancing costs with service quality, the Department of Posts aims to maintain reliable and secure ATM access for millions of postal banking customers across the country.
Post Office banking officials have encouraged customers to opt for digital payment modes, such as UPI, internet banking, and mobile banking, to minimize unnecessary transaction fees. Using digital platforms not only helps users avoid ATM-related charges but also promotes faster and safer transactions.
Additionally, customers are advised to plan their withdrawals carefully—for example, by withdrawing larger amounts fewer times instead of multiple small transactions—to make the most of their free limits.
Apart from transaction-related fees, the annual maintenance charge for a Post Office ATM card remains ₹125 plus GST. There are also fixed fees for card replacement, reissue, or duplicate PIN requests, ensuring accountability and service cost recovery.
Cardholders are encouraged to stay informed about these charges through official postal banking communications or their nearest Post Office branch. Proper awareness can help individuals manage their accounts efficiently and avoid unexpected deductions.
The updated Post Office ATM fee structure marks a shift toward a more sustainable and secure banking model. While the revised limits may seem restrictive for frequent users, they are part of broader efforts to modernize India’s postal banking network and align it with the digital banking ecosystem.
By adopting smart withdrawal practices and leveraging digital payment tools, customers can continue to benefit from the convenience of Post Office services while keeping additional costs under control.
