Premature encashment of NSC certificates: entitlement and payment vary by holding period and purchase date. Premature encashment of National Savings Certificates is allowed on death, pledge forfeiture to a Gazetted Government Officer, or court order. If encashed within one year only face value is payable. Encashment after one year but before three years yields face value plus simple interest at the Post Office Savings Account single account rate, with the difference from ordinary maturity interest treated as a discount. Encashment after three years pays the maturity amount under the ordinary interest rule adjusted for discount according to prescribed tables for Rs.100 and proportionately for other denominations, varying by purchase date.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Premature encashment of NSC certificates: entitlement and payment vary by holding period and purchase date.
Premature encashment of National Savings Certificates is allowed on death, pledge forfeiture to a Gazetted Government Officer, or court order. If encashed within one year only face value is payable. Encashment after one year but before three years yields face value plus simple interest at the Post Office Savings Account single account rate, with the difference from ordinary maturity interest treated as a discount. Encashment after three years pays the maturity amount under the ordinary interest rule adjusted for discount according to prescribed tables for Rs.100 and proportionately for other denominations, varying by purchase date.
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