The duration of the National Savings Certificate Scheme – NSC VIII Series is six years and ten years for NSC IX Series and the NSC certificates can be enchased at the end of this period, wherein the principal, along with the cumulative interest, is paid to the investor.
The holder can apply for encashment at any post office that does savings bank work, not necessarily at the post office from where the NSC was purchased and registered (You also need to submit NSC transfer form along with encash application).
If the certificate is presented at a post office other than the one from where it was bought, an application has to be submitted with details like serial number, date of issue, full name, registered and current address.
When can I encash my NSC?
1- Premature Encashment
(a) Is permitted only on the death of the holder Or any of the holders in case of joint holders
(b) On forfeiture by a Pledge being a Gazetted Government Officer
(c) When ordered by court of law
2- Maturity Encashment
a) After Completion of 6 years for NSC VIII Series
b) After Completion of 10 years for NSC IX Series
How the amount is paid?
The amount is to paid in cash or credited to an Saving Bank Account.
Things you need for NSC encashment?
1- Original NSC certificate
2- Proof of Identity (e.g. Valid Indian Passport, Indian Driving License etc.) of the holder.
3- Application or NSC Encashment Form
4- The investor/nominee must sign behind the certificate as a receipt for amount received on encashment.
a) Encashment by Minor who turns Major: If NSC is purchased on behalf of a minor, who has attained majority, the certificate shall be signed by the major investor, which must be attested either by the guardian or by any person known to the postmaster.
b) Encashment by Nominee: In case of the holder’s death, the nominee can encash the NSC before or after maturity. Using below forms –
Annexure-1 – Claim Application for Settlement where Nomination Registered with Post Office
Annexure-2 – Claim Application for Settlement where Claim on Legal Evidence
c) Encashment where no Nomination Exists: If there no nomination exists, the legal hair can encash the NSC by submitting Form SB84
How to check, how much will I get?
What will happen if I won’t encash NSC within the above time frame?
The maturity proceeds that are not drawn are eligible to an interest offered by the post office savings account for a maximum of two years. After two years no interest will be paid.
How to encash if the NSC holder is not present?
You have two option –
1- The NSC holder has to sign on the back of NSC Certificate and also write an authorisation letter to the post master authorising and verifying the encasher signature. The encasher will have visit the post office with two witness.
2- Transfer the NSC to the new user (encasher)(using Form NC34) and then new user will encash on it’s own.