National Savings Certificates: premature encashment allowed in limited circumstances with time-based payment rules and discounts. Premature encashment is allowed on death of a holder, forfeiture by a conforming Gazetted Government Officer pledgee, or by court order. Within one year only face value is payable. If encashed after one year but before three years, face value plus simple interest at the Post Office Savings Account single account rate for complete months is payable, the discount being the difference between this simple interest and rule 15 interest. After three years the payable amount follows prescribed tables per Rs.100 (proportionate for other denominations), with rounding to the nearest rupee; certificates purchased on or after 1 April 2016 earn interest on annual compounding at the notified rate.
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Provisions expressly mentioned in the judgment/order text.
National Savings Certificates: premature encashment allowed in limited circumstances with time-based payment rules and discounts.
Premature encashment is allowed on death of a holder, forfeiture by a conforming Gazetted Government Officer pledgee, or by court order. Within one year only face value is payable. If encashed after one year but before three years, face value plus simple interest at the Post Office Savings Account single account rate for complete months is payable, the discount being the difference between this simple interest and rule 15 interest. After three years the payable amount follows prescribed tables per Rs.100 (proportionate for other denominations), with rounding to the nearest rupee; certificates purchased on or after 1 April 2016 earn interest on annual compounding at the notified rate.
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