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.

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