NEFT, RTGS facility for Post Office Savings Account

The Department of Post has recently rolled out the NEFT and RTGS facility for Post Office Savings Bank Account (POSB) holders. The NEFT facility has been made available from May 18th, 2022, whereas the RTGS facility will be available from May 31st, 2022.

What are the benefits?

With the launch of the service, Post Office Savings Bank Account (POSB) holders can electronically transfer money. The transfer of funds to and from other bank accounts to POSB accounts in DoP-CBS (Department of Posts – Core Banking Solutions) will become easier. This will also help customers to easily invest in POSB schemes.

What are NEFT and RTGS?

NEFT stands for National Electronic Funds Transfer and RTGS stands for Real-Time Gross Settlement. NEFT and RTGS are forms of electronic money transfers and are available 24X7 throughout the year. NEFT transactions are settled every 30 minutes in batches, whereas RTGS transactions are settled in real-time and individually without netting or grouping.

What will be the IFS code?

Indian Post Payments Bank (IPPB) entered into an arrangement with the Departments of Post (DoP) to allow NEFT/RTGS transactions to their customers. To facilitate such transactions a dedicated IFSC (Indian Financial System Code) is created which will be used only for transactions in DoP Customer accounts.

For inward Transactions to IPPB accounts, the IFS code will be IPOS0000001. For inward Transactions to Post Office Savings Account (POSA) accounts in the Department of Posts, the IFS code will be IPOS0000DOP.

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