High Value Withdrawal Verification: FNPO Seeks Withdrawal of Manual Verification Process

High Value Withdrawal Verification: FNPO Seeks Withdrawal of Manual Verification Process

The Federation of National Postal Organisations (FNPO) has submitted a representation to the Secretary, Department of Posts, requesting the withdrawal of the obsolete manual High Value Withdrawal (HVW) verification process in Post Office Savings Bank (POSB). The federation argues that the current verification mechanism has become redundant due to the implementation of Aadhaar-based e-KYC, biometric authentication, digital signatures, real-time transaction alerts, and Core Banking Solution (CBS), which already provide strong safeguards against fraud.

According to the representation, the High Value Withdrawal Menu was introduced when robust digital verification systems were not available. Today, customers receive instant SMS alerts, Aadhaar authentication is mandatory for many transactions, and withdrawals are processed through secure CBS platforms, making the manual verification process unnecessary and time-consuming.

FNPO highlighted that the continuation of manual verification creates additional workload for Post Office staff, delays customer service, increases paperwork, and diverts manpower from essential public services. The federation also pointed out that the practice of monitoring passbooks not received for annual interest posting and other manual checks has already been discontinued because modern digital systems provide adequate safeguards.

To improve operational efficiency, FNPO has requested the Department of Posts to:

• Withdraw the manual High Value Withdrawal verification process in view of Aadhaar-based e-KYC implementation.
• Discontinue other redundant manual Savings Bank verification procedures wherever equivalent digital controls already exist.
• Encourage greater use of digital authentication methods, including e-KYC, digital signatures, biometric verification, CBS, Aadhaar-based authentication, and QR-enabled verification, instead of manual processes.

As an alternative, if the Department considers some level of verification necessary, FNPO suggested increasing the verification threshold from ₹50,000 to ₹1,00,000. The federation stated that the earlier threshold was prescribed when customers primarily used passbooks and signature verification, whereas the current digital environment provides much stronger authentication and security measures.

FNPO further emphasized that manual verification of postal Savings Bank services consumes significant staff time, while outdated procedures reduce productivity and affect customer satisfaction. Eliminating unnecessary manual verification will allow postal employees to focus on delivering faster, more efficient, and customer-centric services.

The representation concludes with an earnest appeal to the Department of Posts to review the existing procedures and issue suitable instructions for discontinuing obsolete manual verification practices, thereby promoting digital governance, operational efficiency, faster customer service, and effective utilization of manpower in Post Office Savings Bank operations.