National Savings Scheme Rules, 1992 - G.S.R. 763(E) - Income Tax

National Savings Scheme sets 100-rupee minimum deposits, 11% annual interest on lowest monthly balance, four-year withdrawal term.

The National Savings Scheme requires separate yearly accounts at authorised post offices, defines eligible depositors, and deems certain 1987 scheme transfers as deposits. It mandates a minimum deposit of one hundred rupees and multiples thereof. Interest is eleven per cent per annum, calculated monthly on the lowest balance between the close of the tenth day and month-end, credited annually with fractional rupee rounding. Interest may be withdrawn anytime; principal becomes withdrawable after four years from the end of the year of account opening. The scheme prescribes Pass Book use, annual balance confirmation, closure rules, and a government power to relax provisions to avoid undue hardship.