How to Pledge the National Saving Certificate

 

Pledging of certificate

(1)  On an application being made in the prescribed form, by the transferor and the transferee, the Postmaster of the office of the registration may, at any time, permit the transfer of any certificate as security to—

 (a)  the President of India or Governor of a State in his official capacity;

 (b)  the Reserve Bank of India or a scheduled bank or a cooperative society including a cooperative bank;

 (c)  a corporation or a Government company; and

 (d)  a local authority:

Provided that the transfer of a certificate purchased on behalf of a minor shall not be permitted under this sub-rule unless the parent or the guardian of a the minor referred to in sub-clause (i) or as the case may be sub-clause (ii), of clause (b) of section 5 of the Act certifies in writing that the minor is alive and that the transfer is for the benefit of the minor.

(2)  When any certificate is transferred as security under sub-rule (1), the Postmaster of the office of the registration shall make the following endorsement on the certificate, namely:—

“Transferred as security to. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .”

(3)  Except as otherwise provided in these rules, the transferee of a certificate under this rule shall, until it is re-transferred under sub-rule (4), be deemed to be the holder of the certificate.

(4)  A certificate transferred under sub-rule (2), may, on the written authority of the pledge, be re-transferred with the previous sanction in writing of the authorised Postmaster and when any such retransfer is made, the Postmaster of the office of registration shall make the following endorsement on the certificate, namely:—

“Re-transferred to . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..”

Note 1: A Gazetted officer of the Government accepting the certificate as security under sub-rule (1) or releasing the pledge under sub-rule (4) on behalf of the President or the Governor of a State, shall certify under his dated signature and seal of office that he is duly authorised to execute such instruments or deeds on behalf of the President of India or Governor of a State, giving the particulars of the number and date of the notification of the Government authorising him in this behalf.

Note 2: An officer of the Reserve Bank of India or a scheduled bank or a cooperative society including a cooperative bank, a corporation or a Government company or a local authority, as the case may be, accepting the certificate as security under sub-rule (1) or releasing the pledge under sub-rule (4) on behalf of the respective institution, shall certify under his dated signature and seal of the office that he is duly authorised under the articles of the said institution, to execute such instruments or deeds on its behalf.

(5) Where as a result of several endorsements made under sub-rules (2) and (4) on a certificate, no space is left for making further endorsements of a like character on that certificate, a fresh certificate may be issued by the Postmaster of the office of the registration in lieu of such certificate.

(6) A fresh certificate issued under sub-rule (5) shall be treated as equivalent to the certificate in lieu of which it has been issued for all purposes of these rules.

3 thoughts to “How to Pledge the National Saving Certificate”

  1. The information given is helpful. My doubt is If NSC is Pledged to a Scheduled bank for a loan, Can an authorised officer of that bank encash the NSC before maturity when he feels that loan amount may cross the maturity value of NSC. Kindly clarify.

    1. Since Authorised officer is considered as legal owner of the NSC he can encash the NSC subject to giving proper notice to the original owner for repayment of loan taken with sufficient time for repayment of said loan. In case if loan is not repaid on time then bank can redeem the NSC.

  2. 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.

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