KVP is available in Rs.1,000 to Rs.50,000 denomination and NSC is available in Rs.100 to Rs.10,000. If a customer invests Rs.10 lakh in KVP, 20 certificates under denomination of Rs.50,000 have to be issued. It would be cumbersome for Post Office/ Bank and customer to maintain these many certificate. In the new electronic mode, customers will be given as one entry in the passbook on any one day.
In case of transfer of NSC or KVP, both the persons (buyer & seller) shall apply for transfer of NSC & KVP in the prescribed format. The old passbook should be obtained in original and old entries will be cancelled (by drawing cross lines with red ink), followed by dated signatures of authorised official with stamp and passbook re-issued in the name of new owner.
The original passbook should be returned and an amount paid entry should be made in the passbook. All the passbook pages will be cancelled (by drawing cross lines with red ink), followed by dated signatures of authorised official with stamp.