National Savings Certificate (VIII Issue)
Purchase of Certificate: A Certificate can be purchased from all Head Post Offices and
authorized Post Offices. A Certificate can be purchased by an adult for himself or jointly,
by an adult on behalf of a minor. Any person desirous to purchase National Savings
Certificate, shall apply in a prescribed Form in any Post Office, in person or through an
authorized agent Small Savings.
Payment: Payment for the purchase of the Certificate may be made to a Post Office in
cash, locally executed cheque, order, demand draft drawn in favour of Postmaster, a
duly signed Withdrawal Form with the Passbook for withdrawal from the Post Office
Savings Bank Account or surrender of a matured old certificate duly discharged as
"Received payment through issue of fresh certificate vide application attached."
Rate of Interest: Rate of Interest is 8.16 per cent compounded half yearly and paid after
the maturity period of Six years along with the principal amount. The interest, as
specified in the table below, shall accrue to the holder of the certificate the end of each
year and such interest shall be deemed to have been re invested on behalf of the holder
and aggregated the amount of face value of the certificate.
Encashment: The Certificate can be encashed after Six years. The Certificate can be
encashed at the Post Office at which stands registered or it can also be encashed at any
other Post Office if the Office-In-Charge of that Post Office is satisfied verification from
the office of its registration that the person presenting the Certificate for encashment is
entitled to.
The person entitled to receive the amount due under a Certificate shall, on its
encashment, sign on the back thereof in token of having received the payment. If the
Certificate is purchased on behalf of a minor who has since attained majority, Certificate
shall be signed by such a person himself, but his signature shall be attested either by the
person who purchased the Certificate on his behalf or by any person who is known to the
Postmaster.
In case of death of the holder, in respect of which a nomination is in force, the nominee
or nominees shall be entitled encash the Certificate at any time before or after the
maturity of the Certificate or they can sub-divide the Certificate appropriate
denominations in favour of individual nominees or two adult nominees jointly. For this,
the surviving nominees shall make an application to the Postmaster, supported by the
proof of death of the holder.
• Rs.100 grows to Rs.160.10 on maturity with interest rate of 8 per cent
compounded half yearly
• Minimum investment Rs.100. No maximum limit
• Available in denominations of Rs.100, Rs.500, Rs.1000, Rs.5,000 and Rs.10,000
• Deposits up to Rs.100000 qualify under section 80C of the Income Tax Act
• Interest accruing annually is automatically reinvested, and such re-invested
interest will also qualify for
• tax rebate under section 80C of the Income Tax Act
• No tax deduction at source
Premature Encashment: A Certificate may be prematurely encashed- in case of If the
Certificate is encashed within one year from the date of Certificate, only the face value of
the Certificate shall payable. If the Certificate is encashed after expiry of One year but
before the expiry of Three years from the date Certificate, an amount equivalent to the
face value of the Certificate together with simple interest shall be payable. If Certificate
is encashed after the expiry of Three years from the date of Certificate, the amount
payable, inclusive of interest for the denomination of Rs.100 shall be as given in the
table.
Features of the Scheme
National Savings Certificate Scheme was issued vide Government of India, Ministry of
Finance (DEA) Notification Number G.S.R. 496 (E) dated May 1, 1989 and further
amended from time to time.
Some features regarding transfer of the Certificate are:
Replacement of Lost or Destroyed Certificate: If a Certificate is lost, stolen, destroyed,
mutilated or defaced, the person entitled thereto may apply for the issue of a duplicate
Certificate to the Post Office where the Certificate is registered. application shall be
accompanied by a statement showing particulars such as number, amount, date of the
Certificate and circumstances attending such loss, theft, destruction, mutilation or
defacement. If the Officer-In-Charge is satisfied, he issue a duplicate Certificate on the
applicant furnishing an indemnity bond in the prescribed Form with sureties or with
bank's guarantee.
* death of the holder
* forfeiture by a pledgee being Gazetted Government Officer when the pledge is in
conformity with these rules
* when ordered by the Court of Law
Period From The Date Of The Certificate To Amount Payable
The Date Of Its Encashment Inclusive Of Interest
More than 3 years but less than 3 years and 6 months 121.15
More than 3 years and 6 months but less than 4 years 125.09
More than 4 years but less than 4 years and 6 months 129.16
More than 4 years and 6 months but less than 5 years 133.36
More than 5 years but less than 5 years and 6 months 137.69
More than 5 years and 6 months but less than 6 years 142.16
• A National Savings Certificate can be transferred from one Post Office to
another, by making an application in prescribed Form.
• The Certificate can also be transferred from one person to another with the
previous consent in writing of the Postmaster or the Head Postmaster. The
transfer can be made after the expiry of a period of at least one year from the date
of Certificate.
• On an application being made in the prescribed Form by the transferor and
transferee, the Postmaster may permit transfer of any Certificate (pledging of
Certificate) as a security to the President of India or Governor of a State in official
capacity, to the Reserve Bank of India or any scheduled bank, to any co-operative
society, to a Corporation Government company, to a local authority or to a
housing finance company approved by the National Housing Bank. transfer is
permitted only for the whole amount and not for the part of it. Transfer of the
Certificate purchased on behalf of minor shall be permitted only if his guardian
certifies that the minor is alive and the transfer is for the benefit of minor. The
Certificate may be re-transferred to the investor on the written authority of the
pledgee, with the previous sanction of the authorized Postmaster.
• National Savings Certificate can be purchased in Demat Form in select Post
Offices.
Nomination: Nomination facility is available for the National Savings Certificate. If such
nomination is not made at the of purchasing the Certificate, it may be made by the single
holder, the joint holder or the surviving joint holder, by applying in prescribed Form, at
any time after the purchase of the Certificate.
No nomination shall be made in respect of a Certificate applied for and held by or on
behalf of a minor.
A nomination made by the holder or holders of the Certificate may cancelled or varied by
submitting application in prescribed Form affixing postage stamps, together with the
Certificate to Postmaster.
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