Encashment of NSC

One of the most common questions asked from investors is who have invested in National Savings Certificate is – When can the opt to encash the NSC?if you are also looking for en-cashing NSC, you can do so in case of

  1. maturity
  2. before maturity
  3. death of NSC holder

Lets see each case one by one

NSC Encashment in case of Maturity

The Certificate can be encashed after 5/6/10 years depending on the NSC scheme you have invested.  The Certificate can be en-cashed 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.

NSC Encashment in case of Death

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.

Premature Encashment of NSC

A Certificate may be prematurely encashed- in such case

  • 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.

Above article is for information purpose only, Please contact Post office for latest rules. Author is not directly or indirectly associated with the sales of above scheme or Post office. if you have more accurate information please share with us, so that this can be used for the help of investors looking for solutions.

19 comments for “Encashment of NSC

  1. June 24, 2017 at 5:48 am

    If NSC are withdrawn pre-matured in 3 years out of 10 , and no interest is ever claimed deduction , at the time of receipt of amount whether entire amount is taxable or only the accrued interest is taxable..?

  2. prabha sharma
    May 9, 2017 at 11:16 am

    my nsc mature in March 27th 2017 i want to encash now can i encash .

  3. prabha sharma
    May 9, 2017 at 11:12 am

    how many days after maturity we can encash nsc

  4. RKS
    March 1, 2017 at 7:50 am

    I want to buy NSC but I have one question if I buy NCS and If I want to withdraw it before maturity(in six months) is it possible

  5. Varunendra Nath Dave
    November 7, 2016 at 7:22 am

    Is it mandatory to open a post office Savings account to encash the N.S.C. on maturity.

    • Jeevan Tarun
      November 8, 2016 at 6:26 pm


      • December 16, 2016 at 5:07 pm

        Hi Jeevan,
        I hope you can advise me. I purchased an NSC from a post office in South Delhi. However, the NSC carries stamps of both South Delhi post office (where I purchased it from) and the head post office of Sarojini Nagar, South Delhi. I am assuming the NSC was made from the head post office.

        Now, I live in Ghaziabad and can’t go to either of those post-offices. I am afraid reading issues that people faced while getting their NSC encashed. Do you think this would go in a long soup?
        Also, do I need to just submit the NSC and keep checking the postoffice every month, if they have made any progress or not? WIll they give me some written proof that I have submitted by certificates there?


    September 25, 2016 at 6:58 pm

    My father had bought NSC worth 20 Lacs, but with post master advice he did for 10 years instead of 5 years. He is retired 3 years back, and this was his retirement money.
    Now he is hospitalized for last 15 days at Apollo Kolkata. We need money very badly as he has no liquid money.
    Post Master is saying he needs court order to liquidate.
    Please guide how to make a Court order.

    Amit Prasad

  7. madanmohan
    May 4, 2016 at 3:04 am

    I have purchased nsc from model town p o Delhi now residing at Jaipur Rajasthan how I can take payment of nsc without going to issuing post office.

  8. Suchismitasurroy91
    March 29, 2016 at 3:07 pm

    I hav drawn an nsc of 40,000 on 27 feb 2016. Can i withdraw it now aftr a period of one month only?

  9. R K Bnaerjee
    December 23, 2015 at 6:00 am

    I purchased NSC(s) of some amount in 2009. During purchasing the encashment procedure, as I knew was pay in cash if matured value be less than Rs 20,000/- and in A/C payee cheque if more than Rs 20,000/-. The strange thing is that though I want cash not cheque, yet as per opinion of post office persons I have to applly for issuing cheque. Is it proper?
    Again now when I went to post office for encashment of the NSC(s), I am informed that I have open an account in post office and the matured amount only will be paid through that account. Though I am not interested to open and maintain any account in post office.
    Question is that how any new rule can be implemented for the old cases which(agreement) were done before generating new rule. So there is no reliability.
    On some condition if any one will invest/give some money to postal department they can form new rule so that you will not be able to get return your money.

    • shiva
      January 19, 2016 at 1:57 pm

      Even I am facing the same issue, I am fine with cheque or cash. But they are saying to open SB account in post office. Is it mandatory.

      • Jeevan Tarun
        January 19, 2016 at 9:44 pm

        No, no one force you to do so. Please ask them for written literature or just raise a Rs.10 RTI asking why is it necessary.

        • Bhupendra Shakher pawar
          March 21, 2017 at 9:12 am

          Even i am faceing same problem of opening saving account in po & What is rs.10 rti

    May 23, 2015 at 7:17 am

    My father have 10 nos NSC during their service from varoius Post office like Nagpur GPO, Nagpur City, Lonand ( all from Maharashtra) which expired on 1994.
    Settlement of claim done in 1998 with Paper verification from Panvel Post Office. Dist Raigad, Maharashtra state.
    After father death how can I get payment of all NSC
    Thanks for Reply
    Sunil Gupta, flat no 101, plot no 33, Krishna Majesty, Sector 35 D, Kharghar, Navi Mumbai, Dist Raigad, Maharashtra State. Mob no 9967008014

  11. Pinkesh Parmar
    January 24, 2015 at 4:12 am

    NSC Certificate How much Tax benefit limit

    • Savingwala
      January 31, 2015 at 10:03 am

      Tax benefits as per the prevailing Income tax act

  12. om prakash saraff
    October 14, 2014 at 9:29 am

    can nsc be encashed by any other person or on the behalf if the nomine authorised to his relative alongwith origional certificate duly signed on back side

  13. rejish
    May 24, 2013 at 6:33 am

    can nsc be encashed by any other person or on the behalf ….example – can wife will be eliglible to encash NSC , if nsc is in the name of husband..

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