How to Encash National Saving Certificate (NSC) Before Maturity

The maturity period of a certificate of any denomination shall be ten years commencing from the date of the certificate. The amount, inclusive of interest, payable on encashment of a certificate at any time after the expiry of its maturity period shall be Rs. 234.35 for denomination of Rs. 100 and at proportionate rate for any other denomination. The interest specified in the Table below shall accrue to the holder or holders of the certificate at the end of each year and the interest so accrued at the end of each year up to the end of the ninth year, shall be deemed to have been re-invested on behalf of the holder and aggregated with the amount of face value of the certificate.

TABLE

The year for which interest accrues

Amount of interest (Rs.) accruing on certificate of Rs. 100 denomination

(1)

(2)

First Year

8.89

Second Year

9.68

Third Year

10.54

Fourth Year

11.48

Fifth Year

12.50

Sixth Year

13.61

Seventh Year

14.82

Eighth Year

16.13

Ninth Year

17.57

Tenth Year

19.13

Note: The amount of interest accruing on a certificate of any other denomination shall be proportionate to the amount specified in Table above.

Premature encashment,

(1)  Notwithstanding anything contained in rule 15 and subject to sub-rules (2), (3) and (4), a certificate may be prematurely encashed in any of the following circumstances, namely:—

 (a)  on the death of the holder or any of the holders in case of joint holders;

 (b)  on forfeiture by a pledge being a Gazetted Government Officer when the pledge is in conformity with these rules; or

 (c)  when ordered by court of law.

(2)  If a certificate is encashed under sub-rule (1) within a period of one year from the date of the certificate, only the face value of the certificate shall be payable.

(3)  If a certificate is encashed under sub-rule (1) after expiry of one year but before the expiry of three years from the date of certificate, the encashment shall be at a discount. On encashment of the certificate, an amount equivalent to the face value of the certificate together with simple interest shall be payable. Such simple interest shall be calculated on the face value at the rate applicable from time to time to single accounts under the Post Office Savings Account Rules, 1981, for the complete months for which the certificate has been held. The difference between the aforesaid simple interest and the interest accruing under rule 15 shall be deemed to be the discount.

(4) If a certificate is encashed under sub-rule (1) after the expiry of three years from the date of the certificate, the amount payable inclusive of interest accrued under rule 15 and after adjustment of discount, shall be as specified in the Table below for a certificate of Rs. 100 denomination and at a proportionate rate for a certificate of any other denomination.

TABLE

Period from the date of the certificate to the date of its encashment

Amount payable inclusive of interest (Rs)

(1)

(2)

3 years or more, but less than 3 years and 6 months

123.14

3 years and 6 months or more, but less than 4 years

127.49

4 years or more, but less than 4 years and 6 months

131.99

4 years and 6 months or more, but less than 5 years

136.65

5 years or more, but less than 5 years and 6 months

143.81

5 years and 6 months or more, but less than 6 years

149.13

6 years or more, but less than 6 years and 6 months

154.65

6 years and 6 months or more, but less than 7 years

160.37

7 years or more, but less than 7 years and 6 months

166.30

7 years and 6 months or more, but less than 8 years

172.46

8 years or more, but less than 8 years and 6 months

178.84

8 years and 6 months or more, but less than 9 years

185.46

9 years or more, but less than 9 years and 6 months

192.32

9 years and 6 months or more, but less than 10 years

199.43

Place of encashment,— A certificate shall be encashable at the post office at which it stands registered:

Provided that a certificate may be encashed at any other post office if the officer-in-charge of that post office is satisfied on verification from the office of its registration that the person presenting the certificate for encashment is entitled thereto.

Discharge of certificate,—

(1)  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.

(2)  In the case of a certificate purchased on behalf of a minor who has since attained majority, the certificate shall be signed by such person himself, but his signature shall be attested by the person who purchased it on his behalf or by any other person who is known to the Postmaster.

(3)  A certificate of discharge may be issued by the post office to any person encashing a certificate on payment of the fee specified in sub-rule (1) of rule 25.

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