Rule 16 - Premature encashment - National Savings Certificates (IX-Issue) Rules, 2011

16. Premature encashment, - (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 pledge being a Gazetted Government Officer when the pledge is in conformity with these rules; or (c) when ordered by 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. 1 [ (4)(i) ] If a certificate is encashed under sub-rule (1) after the expiry of three years from the date of the certificate, 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 (Rs) (1) (2) 3 years or more, but less than 3 years and 6 months 123.14 3 years and 6 months or more, but less than 4 years 127.49 4 years or more, but less than 4 years and 6 months 131.99 4 years and 6 months or more, but less than 5 years 136.65 5 years or more, but less than 5 years and 6 months 143.81 5 years and 6 months or more, but less than 6 years 149.13 6 years or more, but less than 6 years and 6 months 154.65 6 years and 6 months or more, but less than 7 years 160.37 7 years or more, but less than 7 years and 6 months 166.30 7 years and 6 months or more, but less than 8 years 172.46 8 years or more, but less than 8 years and 6 months 178.84 8 years and 6 months or more, but less than 9 years 185.46 9 years or more, but less than 9 years and 6 months 192.32 9 years and 6 months or more, but less than 10 years 199.43 2 [ ( 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 3 [ 1st day of April, 2012 but before the 5 [ 1st day of April, 2013 but before the 1st day of April, 2014 ]] , 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 Rs. 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) 3 years or more, but less than 3 years and 6 months 124.60 3 years and 6 months or more, but less than 4 years 129.26 4 years or more, but less than 4 years and 6 months 134.08 4 years and 6 months or more, but less than 5 years 139.09 5 years or more, but less than 5 years and 6 months 145.20 5 years and 6 months or more, but less than 6 years 150.72 6 years or more, but less than 6 years and 6 months 156.45 6 years and 6 months or more, but less than 7 years 162.39 7 years or more, but less than 7 years and 6 months 168.56 7 years and 6 months or more, but less than 8 years 174.97 8 years or more, but less than 8 years and 6 months 181.62 8 years and 6 months or more, but less than 9 years 188.52 9 years or more, but less than 9 years and 6 months 195.68 9 and 6 months or more, but less than 10 years 203.12 ] 4 [ (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 April, 2013, 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 Rs. 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) 3 years or more, but less than 3 years and 6 months 124.24 3 years and 6 months or more, but less than 4 years 128.81 4 years or more, but less than 4 years and 6 months 133.56 4 years and 6 months or more, but less than 5 years 138.48 5 years or more, but less than 5 years and 6 months 144.50 5 years and 6 months or more, but less than 6 years 149.92 6 years or more, but less than 6 years and 6 months 155.55 6 years and 6 months or more, but less than 7 years 161.38 7 years or more, but less than 7 years and 6 months 167.43 7 years and 6 months or more, but less than 8 years 173.71 8 years or more, but less than 8 years and 6 months 180.22 8 years and 6 months or more, but less than 9 years 186.98 9 years or more, but less than 9 years and 6 months 193.99 9 years and 6 months or more, but less than 10 years 201.27] 6 [ (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 1st day of April 2014, 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 Rs. 100 denomination and at a proportionate rate for a certificate of any other denomination. TABLE Period from date of certificate to date of its encashment Amount payable inclusive of interest (rupees) (1) (2) 3 years or more, but less than 3 years and 6 months 124.24 3 years and 6 months or more, but less than 4 years 128.81 4 years or more, but less than 4 years and 6 months 133.56 4 years and 6 months or more, but less than 5 years 138.48 5 years or more, but less than 5 years and 6 months 144.50 5 years and 6 months or more, but less than 6 years 149.92 6 years or more, but less than 6 years and 6 months 155.55 6 years and 6 months or more, but less than 7 years 161.38 7 years or more, but less than 7 years and 6 months 167.43 7 years and 6 months or more, but less than 8 years 173.71 8 years or more, but less than 8 years and 6 months 180.22 8 years and 6 months or more, but less than 9 years 186.98 9 years or more, but less than 9 years and 6 months 193.99 9 years and 6 months or more, but less than 10 years 201.27 ] ****************** NOTES:- 1 . Re-Numbered vide Notification No. GSR 319(E) dated 25-04-2012 before it was read as, (4) 2 . Inserted vide Notification No. GSR 319(E) dated 25-04-2012 3 . Substituted vide Notification No. GSR 403(E) dated 25-06-2013 w.e.f. 01-04-2013 before it was read as, 1st day of April 2012 4 . Inserted vide Notification No. GSR 403(E) dated 25-06-2013 w.e.f. 01-04-2013 5 . Substituted vide Notification No. G.S.R. 495(E) dated 11-07-2014 w.e.f. 01-04-2014 before it was read as, 1st day of April, 2013 6 . Inserted vide Notification No. G.S.R. 495(E) dated 11-07-2014 w.e.f. 01-04-2014