Department Of Posts Announces New Deposit, Withdrawal Rules For SSY, RD, And Post Office Savings Account

The Department of Posts has introduced a new format for depositors and withdrawal procedures. Many small savings schemes are seeing changes due to these updates. Schemes such as Post Office savings accounts, recurring deposits (RD), Public Provident Fund (PPF), and Sukanya Samriddhi Yojana (SSY) have new revised procedural formats. Additionally, there are the monthly income scheme (MIS), national savings certificate (NSC), and time deposit account, which face the same changes. These changes proposed are aimed at easing transactions and promoting paperless banking through Aadhaar-based e-KYC. These changes were introduced on June 22, 2026 and have been effective from the same date.

The Department of Posts is a government-operated postal system spanning across India. The body functions under the Ministry of Communications, handling over 1,64,000 post offices across Indian urban and rural areas as per the India Post. The body also provides financial services as well as postal services.

Aadhaar-Based e-KYC Expanded

As per a report by Upstox, the new framework allows customers to carry out several transactions through biometric authentication, which is linked to Aadhaar. This eliminates the need for multiple forms and manual paperwork for many services. The system has been introduced across departmental post offices to provide access to faster and safer transactions.

Under these revisions, another change is that customers are no longer required to submit pay-in slips or withdrawal vouchers to make deposits or withdrawals through this e-KYC-based transaction. This change is applied to schemes such as PPF and RDs. This change is expected to reduce paperwork while also improving customer convenience.

Changes to the Account Opening Process

Interested individuals can now open PPF and RD accounts using Aadhaar Authentication without the extensive documentation. The amount mentioned by the customer in the e-KYC account opening form will be considered as the initial deposit. This eases the account opening process while allowing investors to start saving with very few formalities.

Changes to Deposit Amounts

The Department of Posts has allowed deposits up to Rs 50,000 in post office savings account (POSA), RDs, and Sukanya Samriddhi Account through Aadhaar-based biometric authentication without a pay-in slip. Withdrawal up to Rs 20,000 with Aadhaar authentication from POSA has also been allowed. For higher value deposits, the original paperwork is to be followed.

A Digital Push In Postal Services

These latest changes are a part of a broader push to digitise the post office banking services and affiliated schemes. This is also expected to improve overall customer experience. This latest push is expected to make post office schemes more accessible while reducing dependence on physical documentation, benefiting millions of investors.