1. Summary
  2. NSC Eligibility
  3. NSC Features
  4. Advantages of NSC
  5. Maturity period and premature withdrawal under the NSC


The executive agency theme is out there in any respect executive agency post offices and also the Indian Government promotes the executive agency theme. Thanks to the quantity of post offices gift in Bharat and also the quick access to those post offices, the theme has become very hip in Bharat.

The main aim of the theme is for people to create tiny or medium savings, and tax advantages are provided for these savings. Since the theme is inspired by the Indian Government, the risks of finance within the theme are low.

The theme was launched chiefly for people, therefore, non-resident Indians (NRIs) and Hindu Undivided Families (HUF) don’t seem to be eligible to elect this theme. Solely Indian voters are going to be ready to invest within the executive agency theme.

NSC Eligibility

The eligibility criteria for investors to buy the executive agency are mentioned below:

  • The individual should be Indian national.
  • There is not any ordinance for people to buy a certificate.
  • Non-resident Indians cannot invest in the executive agency.
  • Investments are often created with other adults or people can purchase an executive agency on behalf of a minor.
  • Under executive agency VIII Issue, HUFs and Trusts don’t seem to be eligible to speculate within the theme.

NSC Features

The main options of the theme are mentioned below:

  • Minimum investments: The minimum quantity that a certificate is often purchased for is Rs.100. the various denominations that the certificate are often purchased for Rs.10,000, Rs.5,000, Rs.1,000, Rs.500, and Rs.100. Initially, tiny investments are often created, and people will increase investments once possible.
  • Maturity tenure: five years and ten years the 2 maturity periods of the theme that people will choose from.
  • Rate of interest: presently, the speed of interest has been reduced from 7.9% to 6.8%. It’s combined on an annual basis. However, the interest is collectible solely at maturity. For instance, an investment of Rs.100 can get the subscriber Rs.146.93 when five years of investment.
  • Nominations: relations together with minors are often additional as nominees by the capitalist. Just in case the capitalist passes away throughout the tenure of the theme, the political leader is going to be ready to inherit the theme.
  • Different styles of NSC: at first, the executive agency IX Issue and also the executive agency VIII Issue were the 2 styles of certificates offered. However, as of December 2015, the govt. of Bharat stopped the executive agency IX Issue. Therefore, solely the executive agency VIII Issue is out there.
  • Loans against executive agency: The NSC are often used as a security or collateral and may be provided to banks to avail loans. However, the various postmaster should authorize the transfer of the certificate to the bank.
  • Purchase of NSC: Upon submitting the specified documents, the theme is often purchased at post offices.
  • Transfer of certificate: Transfer of executive agency is feasible from one post workplace to a different. Transfer of certificate from one individual to a different is additionally potential. However, the certificate can stay identical, and also the name of the new owner shall be written on the certificate, and also the name of the previous owner are going to be rounded.

Advantages of NSC

Given below are the most blessings of finance within the NSC:

  • One of the most blessings of finance within the executive agency is that the tax advantages that people will avail themselves of on the investments they need to be created. The returns are secure below this theme. Several people like the executive agency theme because it will give a daily financial gain once they retire.
  • Except for the interest that’s earned within the final year, the remaining interest that’s generated is exempt.
  • In case people lose the first certificate, a reproduction certificate is often obtained.
  • Even when the maturity amount, people have choice to continue finance within the theme.
  • Transfer of the certificate is allowed from one individual to a different. However, it’s allowed just once throughout the lock-in amount.
  • The interest that’s generated is combined every year and reinvested towards the theme. Therefore, the endowed quantity of the individual will increase while not getting certificates.

Maturity period and premature withdrawal under the NSC

Under most eventualities, the quantity that has been endowed towards the executive agency can’t be withdrawn before the maturity amount of five years. However, below sure cases, premature withdrawal is allowed. Given below are the cases wherever premature withdrawal is allowed below the executive agency scheme:

  • In case the certificate holder passes away.
  • On the forfeiture of the certificate. However, the grownup should be a Gazetted Government Officer.
  • If ordered by the court of law that the endowed quantity is often withdrawn.

However, sure documents should be submitted by the certificate holder for the withdrawal of the funds. Given below are the list of documents that has to be submitted:

  • The original National Savings Certificate should be submitted.
  • The executive agency encashment kind can have to be compelled to be submitted.
  • Proof of identity.
  • The attestation of the guardian is required just in case the executive agency was purchased on behalf of a minor.
  • In case the certificate holder passes away, the political leader will encash the endowed quantity by submitting Annexure one (registered at a post office) and also the Annexure two (legal evidence) forms.

In case the quantity is withdrawn at intervals a year, no interest is going to be paid. A penalty is going to be charged just in case of early withdrawals in addition. The maturity quantity is paid by the post workplace by cheque.

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BankReed Admin

Banking Professional with 16 Years of Experience. The idea to start this Blogging Site is to Create Awareness about the Banking and Financial Services.

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