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How to encash your discontinued National Savings Certificates (IX Issue)?

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After the choice was authorised and made public on December 1, 2015, the Department of Posts (DoP), which is underneath the path of the Ministry of Communications, discontinued issuing National Savings Certificates (IX Issue) on December 20, 2015.

DoP stated in a notification dated 30.11.2022 stated that earlier closing of any discontinued scheme account/certificates together with NSS’87 & NSS-92 must be completed at HO solely and closure quantity must be paid solely by credit score into financial savings account or by cheque and no money cost must be made. In a letter dated 16.11.2022, DoP stated it has looked for the clarification on encashment of NSC (IX Issue) which is likely one of the discontinued schemes.

“Keeping in view of the providers to the purchasers and the restriction out there in Finacle System, it’s clarified that Though NSC IX Issue is a discontinued scheme, NSC IX Issue certificates could also be discharged / encashed / closed in any Departmental Post Office, following the procedures prescribed in Chapter 13 of POSB CBS Manual Volume (Corrected as much as 31.12.2021),” said DoP in a statement.

NSC IX Issue.certificates which have already been discharged in the SOs following the prescribed procedures, shall be treated as regular, said DoP on 30th November 2022.

With effect from 1.12.2011, 10 Year National Savings Certificates (IX Issue) were made available for purchase through Departmental Post Offices and other post offices as may be permitted by Heads of Circles working in Savings Banks. The sale of these certificates was halted as of 20.12.2015. The certificate was available in the 100/-, Rs. 500/-, Rs. 1000/-, Rs. 5000/- and Rs. 10,000/- and the scheme was issued to the individuals only with effect from 1.12.2011 to 19.12.2015. The 10 Year National Savings Certificates (IX Issue) had a ten-year maturity period starting on the date specified on the certificate.

“The amount inclusive of interest payable on encashment of a certificate for the denomination of Rs.100/- purchased between 1.12.2011 to 31.3.2012 at any time after the expiry of its maturity period shall be Rs. 234.35,purchased on or after 1.4.2012 shall be Rs. 238.87 and purchased between 1.4.2013 to 19.12.2015 shall be Rs. 236.60 at proportionate rate for any other denomination,” stated DoP in a notification dated 30.11.2022.

Ministry of Finance, Department of Economic Affairs has determined to interchange the present 6 years NSC(VIII-Issue) with 5 Years NSC(VIII-Issue) with impact from 1.12.2011. From 01.04.2020, rates of interest are 6.8 % compounded yearly however payable at maturity.

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