How to Encash National Saving Certificate (NSC) in case of Death of Holder: Payment to heirs for NSC

(1)  If a person dies and is at the time of his death the holder of a Savings Certificate and there is no nomination in force at the time of his death and probate of his will or letters of administration of his estate or a succession certificate granted under the Indian Succession Act, 1925 (39 of 1925) is not, within three months of the death of the holder produced to the authority specified in the Table to sub-rule (2), then if the sum due on the Savings Certificate does not exceed Rs, 20,000 (inclusive of the sum due on the Savings Certificates issued from time to time and held by the deceased), the authority specified in the Table to sub-rule (2) may pay the same to any person appearing to it to be entitled to receive the sum or to administer the estate of the deceased.

(2)  The authorities specified in the Table below shall be competent to sanction claims upto the limit noted against each on the death of the holder of the savings certificate without production of the probate of his will or letters of administration of his estate or succession certificate granted under the Indian Succession Act, 1925 (39 of 1925).

TABLE

  

Name of the authority

Limit in (Rs)

  

(1)

(2)

(i)

Time Scale Departmental Sub-Postmasters

1,000

(ii)

Sub-Postmaster in Lower Selection Grade

2,000

(iii)

Sub-Postmasters/Deputy Postmasters/Postmaster in Higher Selection Grade (All Non Gazetted)

5,000

(iv)

Deputy Postmasters/Senior Postmasters/Deputy Chief Postmasters/Superintendent of Post Offices/Deputy Superintendent of Post Offices (All Gazetted Group-B)

20,000

(v)

Chief Postmaster in Head Offices, Senior Superintendents of Post Offices (All Gazetted Group-A)

50,000

(vi)

Regional Directors/Director (General Post Offices)(in Mumbai and Kolkata)

75,000

(vii)

Chief Postmasters General/Postmasters General (Headquarter and Region)

1,00,000

Encashment of Certificates held by Army, Air Force and Navy Personnel,—Where a certificate is held by a person who is subject to the Army Act, 1950 (46 of 1950) or the Air Force Act, 1950 (45 of 1950) or the Navy Act, 1957 (62 of 1957), and such person dies or deserts, the Commanding Officer of the Corps, department, unit or ship to which the deceased or deserter belonged or the Committee of Adjustment, as the case may be, may send a requisition to the officer-in-charge of the post office where the certificate stands registered to pay him or it, the amount due under the certificate; and the officer-in-charge of the post office shall be bound to comply with such requisition even though there is in force at the time of death or desertion of holder of the certificate a nomination made in favour of any person.

Explanation: The aforesaid requisition must be made under section 3 or section 4 of the Army and Air Force (Disposal of Private Property) Act, 1950 (40 of 1950) in the case of a person belonging to the Army or the Air Force, or under section 171 or 172 of the Navy Act 1957 (62 of 1957) in the case of a person belonging to the Navy.

2 thoughts to “How to Encash National Saving Certificate (NSC) in case of Death of Holder: Payment to heirs for NSC”

  1. Sir,

    My grandfather invested in NSC ON 7-5-2002 and he passed away before maturity. The nominee is my mother but unfortunately my mother lost that certificate. I asked in many department of post office in various citys, but I didn’t get any rule or procedure to get duplicate certificate. (if its lost by nominee)

    Plz help me out.

  2. IN NSC PURCHISING ,IF APPLICANT AND NOMMINIEES BOTH ARE DIED THEN WHAT IS PROCESS OF PAYMENT OF NSC TO HIS SON, Please help me

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