Rule 16 - Premature encashment - National Savings Certificates (VIII Issue) Rules, 1989

Premature encashment. 16. (1) Notwithstanding anything contained in rule 15 and subject to sub-rules (2), (3) and (4), a certificate may be prematurely encashed in any of the following circumstances, namely :- (a) on the death of the holder or any of the holders in case of joint holders; (b) on forfeiture by a pledgee being a Gazetted Government Officer when the pledge is in conformity with these rules ; or (c) when ordered by a court of law. (2) If a certificate is encashed under sub-rule (1) within a period of one year from the date of the certificate, only the face value of the certificate shall be payable. (3) If a certificate is encashed under sub-rule (1) after expiry of one year but before the expiry of three years from the date of certificate, the encashment shall be at a discount. On encashment of the certificate, an amount equivalent to the face value of the certificate together with simple interest shall be payable. Such simple interest shall be calculated on the face value at the rate applicable from time to time to single accounts under the Post Office Savings Account Rules, 1981, for the complete months for which the certificate has been held. The difference between the aforesaid simple interest and the interest accruing under rule 15 shall be deemed to be the discount. [(4) (i) If a certificate is encashed under sub-rule (1) after the expiry of three years from the date of certificate purchased before the 1st day of March, 2001, the amount payable, inclusive of interest accrued under rule 15 and after adjustment of dis count, shall be as specified in the Table below for a certificate of ₹ 100 denomination and at a proportionate rate for a certif icate of any other denomination. Table Period from the date of the certificate to the date of its encashment Amount payable inclusive of interest (Rupees) Three years or more, but less than three years and six months 132.00 Three years and six months or more, but less than four years 138.50 Four years or more, but less than four years and six months 145.00 Four years and six months or more, but less than five years 152.00 Five years or more, but less than five years and six months 159.00 Five years and six months or more, but less than six years 166.50; (ii) If a certificate is encashed under sub-rule (1) after the expiry of three years from the date of certificate purchased on or after the 1st day of March, 2001 [but before the 1st day of March, 2002], the amount payable, inclu sive of interest accrued under rule 15 and after adjustment of discount, shall be as specified in the Table below for a certifi cate of ₹ 100 denomination and at a proportionate rate for a certificate of any other denomination. Table Period from the date of the certificate to the date of its encashment Amount payable inclusive of interest (Rupees) Three years or more, but less than three years and six months 126.43 Three years and six months or more, but less than four years 131.71 Four years or more, but less than four years and six months 136.90 Four years and six months or more, but less than five years 142.48 Five years or more, but less than five years and six months 147.98 Five years and six months or more, but less than six years 153.89;] [(iii) If a certificate is encashed under sub-rule (1) after the expiry of three years from the date of certificate purchased on or after the 1st day of March,2002[but before the 1st day of March, 2003], the amount payable, inclusive of interest accrued under rule 15 and after adjustment of discount, shall be as specified in the Table below for a certificate of ₹ 100 denomination and at a proportionate rate for a certificate of any other denomination. [Table Period from the date of the certificate to the date of its encashment Amount payable inclusive of interest (Rupees) Three years or more, but less than three years and six months 124.72 Three years and six months or more, but less than four years 129.39 Four years or more, but less than four years and six months 134.25 Four years and six months or more, but less than five years 139.28 Five years or more, but less than five years and six months 144.50 Five years and six months or more, but less than six years 149.92.]] [(iv) If a certificate is encashed under sub-rule (1) after the expiry of three years from the date of certificate purchased on or after the 1 [ 1st day of March, 2003 but before the 1st day of December, 2011 ] , the amount payable, inclusive of interest accrued under rule 15 and after adjustment of discount, shall be as specified in the Table below for a certificate of ₹ 100 denomination and at a proportionate rate for a certificate of any other denomination. TABLE Period from the date of the certificate to the date of its encashment Amount payable inclusive of interest (Rupees) Three years or more, but less than three years and six months 121.15 Three years and six months or more, but less than four years 125.09 Four years or more, but less than four years and six months 129.16 Four years and six months or more, but less than five years 133.36 Five years or more, but less than five years and six months 137.69 Five years and six months or more, but less than six years 142.16 ] 2 [ (v) If a certificate is encashed under sub-rule (1) after the expiry of three years from the date of certificate purchased on or after the 1st day of December, 2011 3 [ but before the 1st day of April, 2012 ] , the amount payable, inclusive of interest accrued under rule 15 and after adjustment of discount, shall be as specified in the Table below for a certificate of ₹ 100 denomination and at a proportionate rate for a certificate of any other denomination. TABLE Period from the date of the certificate to the date of its encashment Amount payable inclusive of interest (Rupees) (1) (2) Three years or more, but less than three years and six months 123.14 Three years and six months or more, but less than four years 127.49 Four years or more, but less than four years and six months 131.99 Four years and six months or more, but less than five years 136.65 ] 4 [ ( vi ) If a certificate is encashed under sub-rule (1) after the expiry of three years from the date of certificate purchased on or after the 1st day of April, 2012, the amount payable, inclusive of interest accrued under rule 15 and after adjustment of discount, shall be as specified in the Table below for a certificate of ₹ 100 denomination and at a proportionate rate for a certificate of any other denomination. TABLE Period from the date of the certificate to the date of its encashment Amount payable inclusive of interest (Rupees) (1) (2) Three years or more, but less than three years and six months 124.60 Three years and six months or more, but less than four years 129.26 Four years or more, but less than four years and six months 134.08 Four years and six months or more, but less than five years 139.09 ] [(5) The amount payable at the time of premature encashment may be rounded off to the nearest multiple of one rupee and for this purpose any amount of 50 paise or more shall be treated as one rupee and any amount less than 50 paise shall be ignored.] ********* Notes 1. Substituted vide NOTIFICATION [F.No.1/7/2011-NS-II], dated 25-11-2011 before it was read as 1st day of March, 2003 2. Inserted vide NOTIFICATION [F.No.1/7/2011-NS-II], dated 25-11-2011 3. Inserted vide NOTIFICATION NO.GSR 318(E) DATED 25-4-2012 4. Inserted vide NOTIFICATION NO.GSR 318(E) DATED 25-4-2012