NSCs ( VIII and IX Issue )

Parents and guardians can also purchase NSCs on single holder basis on behalf of a minor.

Non residents cannot invest in NSCs. If a Resident in India having purchased a certificate, subsequently becomes Non-Resident during the currency of the maturity period, the certificate shall be encashed or deemed to be encashed on the day he becomes a non-Resident, and interest shall be paid at the rate applicable to the Post Office Savings Account, from time to time, from such day and up to the last day of the month preceding the month in which it is actually encashed.

Application for Cancellation or Variation of Nomination previously made be submitted on form NC-53.

The certificate can also be transferred from one person to another with the previous consent of the Postmaster or the Head Postmaster by submitting application NC-34. The transfer can be made after expiry of a period of at least one year from the date of the certificate.

On an application being made in the prescribed Form by the transferor and transferee, the Postmaster may permit the transfer of any certificate (pledging of certificate) as a security.

The transfer is permitted only for the whole amount and not for the part of it.

Transfer of the Certificate purchased on behalf of minor is permitted only if his guardian certifies that the minor is alive and the transfer is for the benefit of the minor.

The Certificate can be encashed at the Post Office at which it stands registered or it at any other Post Office subject to satisfactory verification of the identity of the presenter.

In case of certificates purchased on behalf of a minor who has since attained majority, the 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 are entitled to encash the Certificate at any time before or after the maturity.

• 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

If the Certificate is encashed within one year from the date of certificate, only the face value of the Certificate shall be payable.

If the certificate is encashed after expiry of one year but before the expiry of three years from the date of certificate, an amount equivalent to the face value together with simple interest at POSB rate is payable.

The amount payable after expiry of three years from the date of the certificate (VIII issue) is as under:

No TDS is deducted on repayment.

No tax deduction at source.

• Loans can be availed from banks on pledge of NSCs. Application on NC-41 is required to be submitted for pledge of NSCs as security.
• NSCs are available in denominations of Rs.100, Rs.500, Rs.1000, Rs.5,000 and Rs.10,000
• NSCs can be purchased in Demat Form from select Post Offices.
• If a certificate is lost, stolen, destroyed, mutilated or defaced, application may be made showing particulars of the certificate with circumstances attending such loss, theft, destruction, mutilation or defacement for issue of duplicate certificate to the Post Office where the Certificate is registered. If the Officer-In-Charge is satisfied, he shall issue a duplicate Certificate on the applicant furnishing an indemnity bond in the prescribed form with sureties or with a bank\'s guarantee.
• Relevant Forms :
  • NC-29 Form for Issue of Duplicate NSCs/KVPs in Lieu of the Loss / Theft / Destruction / Mutilation of NSCs/KVPs in custody of the holder
  • NC-54(a) Bond of Indemnity - Issue of a duplicate certificate(s) in lieu of lost, misplaced, spoiled or mutilated certificates.
  • NC-54(b) Bond of Indemnity - Issue of a duplicate certificate(s) in lieu of lost, misplaced, spoiled or mutilated certificates with a Bank guarantee.
  • NC-61 Bond of Indemnity - To be executed at the time of discharge of original certificates or Issue of duplicate certificate(s) in lieu of lost, misplaced, spoilt, destroyed, defaced or mutilated certificate (s), where original application for purchase is missing.
  • Annexure 1 Claim form for settlement of Savings Certificates of the deceased, where nomination has been registered.
  • Annexure 2 Claim form for settlement of Savings Certificates of the deceased, where the claim is preferred on legal evidence of heirship.