Rule 17 - Premature encashment - Social Security Certificates Rules, 1982

Premature encashment. 17. (1) Notwithstanding anything contained in rule 16, a certificate may, at the option of the holder, be prematurely encashed at a discount at any time after the expiry of three years from the date of issue of the certificate and on such encashment, the amount payable to him shall be equivalent to the face value of the certificate together with simple interest thereon for the complete years and months for which the certificate has been held. Such interest shall be calculated at the rate applicable as on the date of encashment to savings accounts of the category of single accounts in the Post Office Savings Bank. The difference between the aforesaid simple interest and the interest accrued under rule 16 shall be deemed to be the discount. (2) Notwithstanding anything contained in sub-rule (1) of rule 16 and subject to sub-rules (3) and (4), a certificate may be prematurely encashed before the expiry of three years- (i) on forfeiture by a pledge of the certificate, when the pledge is in conformity with these rules, or (ii) when ordered by a court of law. (3) If a certificate is encashed under sub-rule (2) within a period of one year from the date of the certificate, only the face value of the certificate shall be payable and no interest shall be payable. (4) If a certificate is encashed under sub-rule (2) after the expiry of one year but before the expiry of three years from the date of the certificate, the encashment shall be at a discount and the amount payable and discount shall be as specified in sub-rule (1).