Post Office ATM Withdrawals Become Costlier: New Transaction Charges Announced for Metro and Non-Metro Cities

Post Office ATM Users to Pay Higher Fees After Free Transaction Limit

If you hold a Post Office Savings Account (POSA) and use a Post Office ATM card, withdrawing cash just got a bit more expensive—especially if you use other bank ATMs. The Department of Posts has revised its ATM transaction charges, meaning customers will now have to pay additional fees after exceeding their free transaction limits.

The good news is that transactions at Post Office ATMs remain unchanged, but withdrawals made at ATMs of other banks will now attract higher fees.

Free Transactions Still Available—But With Limits

Post Office ATM cardholders can continue to enjoy a few free transactions every month, depending on their city category:

• Metro cities (Delhi, Mumbai, Chennai, Kolkata): 3 free transactions per month

• Non-metro cities: 5 free transactions per month

After these limits are crossed, every additional transaction—whether financial or non-financial—will come with a higher charge.

New Charges for ATM Transactions

The revised ATM withdrawal charges are as follows:

Transaction Type Old Charge New Charge Difference

Financial transaction (withdrawal) at another bank’s ATM	₹20 + GST	₹23 + GST	₹3 more
Non-financial transaction (balance check, mini statement) at another bank’s ATM	₹8 + GST	₹11 + GST	₹3 more
Financial transaction at Post Office ATM	₹10 + GST	₹10 + GST	No change
Non-financial transaction at Post Office ATM	₹5 + GST	₹5 + GST	No change

So, if you frequently use ATMs from other banks, your transaction costs are likely to increase.

What Remains the Same at Post Office ATMs

If you use your Post Office ATM card at a Post Office ATM, there are no changes in the fee structure. You can make up to five free financial transactions and five free non-financial transactions per month.

Once you exceed these limits:

• A ₹10 + GST fee applies per financial transaction (cash withdrawal).

• A ₹5 + GST fee applies per non-financial transaction (like balance inquiry or mini statement).

These charges have not been revised and remain the same as before.

Why the Revision Matters

While the revised rates may seem small, they can add up significantly for frequent ATM users, especially those who rely on ATMs of other banks due to limited Post Office ATM availability. The hike of ₹3 per transaction aligns with similar adjustments made by several commercial banks in recent years, reflecting increased operational and maintenance costs.

Experts advise customers to plan withdrawals strategically to avoid unnecessary charges. Using digital payment methods, mobile banking, or UPI for smaller transactions can also help minimize costs.

Key Takeaways

• Post Office ATM users now face higher fees when using other bank ATMs.

• Free limits remain: 3 transactions for metro cities, 5 for non-metro cities.

• New charges: ₹23 + GST (financial) and ₹11 + GST (non-financial) at other bank ATMs.

• No change for transactions made at Post Office ATMs.

• Frequent users should withdraw cash efficiently to reduce additional expenses.

With this revision, Post Office aims to bring its service fees in line with other major banks while encouraging customers to make the most of digital and in-house banking services.