1. SAVING CERTIFICATES AT A GLANCE
WELCOME
SAVING CERTIFICATES AT A GLANCE

2. Who can purchase NSC An adult Two adults jointly – A or B type
A minor (of 10 years age)
An adult on behalf of a minor

3. Comparison chart Feature NSCVIII issue NSC IX issue Date of
introduction
Denomination
Rs.100, / /-
5000/- & ,000
Maturity Period
5 Years
10 Years
Maturity Value per Rs 1000/-
Rs ( )
Rs ( )
Rs ( )
Rs ( )
Lock up
period
5 years
10 years
Tax benefit
Available
Limit
No limit
Post Maturity Interest
Transferability
Can be transferred from one holder to another

4. Comparison chart Feature KVP( discontinued w.e.f 01-12-11) Date of
introduction
Denomination
Rs 100, 500/ /-
5000/ , ,000/-
Maturity Period
8 years 7months
Maturity Value per Rs 1000/-
Rs 2000/-
Lock up
period
2 Years 6 months
Tax benefit
Not Available
Limit
No limit
Post Maturity Interest
Available
Transferability
Can be transferred from one holder to another

5. PROCEDURE FOR ISSUE Collect a blank certificate from the postmaster
Write the name and address of purchaser in block letters
Write the date of maturity in the space provided
Assign registration number generated from the system
Impress date stamp on the certificate

6. PROCEDURE FOR ISSUE
Impress oblong stamp on the application and place the file before the postmaster who checks and signs on certificate and below the nomination particulars, on the application
Deliver the certificate after taking signature on the application for purchase
Note :- In Sanchay Post the registration and nomination numbers are generated automatically from system,

7. PROCEDURE FOR ISSUE Issue Journal (If Manual) :
Duplicate in HO [NC-18] and Triplicate in SO [NC-18(s)]
Separate Journal for each kind of certificate and each denomination
Kind of certificate and denomination written on top
Entries :
Account ending date
Entry number in the journal in monthly serial

8. PROCEDURE FOR ISSUE Entries : Totals written at the end of the day
Date of issue of certificate
Serial No. of certificate issued
Name of Purchaser
Issue price of the certificate
Regn. No, mode of payment and stock of unsold certificate
Totals written at the end of the day
Impressed with name and oblong stamp
Signed by the Postmaster

9. PROCEDURE FOR ISSUE
First copy sent to HO as Audit Return after completion of account month
Second copy sent to HO along with SO Daily A/C
Third copy retained as office copy
In sanchay post issue journal generated automatically from system

10. Rule No. 13 POSB Manual Volume -II
Preparation of NC 4(a)
Issued if
Payment by cheque/DD
No stock of NSCs for issue
Large number to be issued to one purchaser
After issue of Certificate
Get back PR with acquittance
File with original application
Rule No. 13 POSB Manual Volume -II

11. PPT 6.2.1
Rule No.

12. ENCASHMENT OF CERTIFICATE
NSCs can be encashed by personally attending the post office or through messenger
PA to check :
Period of non-encashability is over
Certificate is not lost or stolen
Certificate is not attached by court of law
Certificate is not the one in lieu of which a duplicate has been issued

13. ENCASHMENT OF CERTIFICATE
Ask the holder to write amount payable, on the reverse of NSC, in figures and words and to sign with date
Take the application with reference to registration No. and compare the signature with specimen
Place the documents before the Postmaster for checking and authorization for payment
Postmaster :
After checking, write his orders “Please pay” on the back of NSC

14. ENCASHMENT OF CERTIFICATE
PA will pay the amount to the holder
Note the date of encashment on the application for purchase (Which is initialed with date by the postmaster)
Impress oblong stamp on reverse of certificate
Note : Because of Sanchay post, the step of cancelling the nomination is not required. Also, the discharge journal is automatically generated.
Discharge Journal prepared in triplicate in SO [NC-19(s)] and duplicate in HO [NC-19]

15. ENCASHMENT OF CERTIFICATE
Through Messenger :
Holder to send authority letter containing attested signature of messenger
Holder to sign the certificate
Usual formalities of obtaining postmaster’s payment order
Messenger to acknowledge the amount on NSC below the signature of holder
The signature of messenger on certificate compared with signature on authority letter and payment is made

16. Encashment certificate At other than office of registration (other office )
What does the customer present?
Matured certificate(s)
Pledge Release order, if any
Manuscript application expressing his desire to encash the certificate at that office 16

17. What will the customer fill in the application form?
Name of the PO in which the certificates stands registered
Full particulars of the certificate viz. Date of Issue, Sl No. of the certificates, Prefix letters, if any, registration No., Date of maturity, Full name and address as given in the application for purchase of certificate, date of birth if the certificate is in the name of a minor
Present address with phone number
Signature of the holder

18. What checks do you make? Whether the maturity period is over
If not, whether the Period of non encashability has expired.
Whether the certificate is not the one which has been reported lost or stolen
Whether the certificate is a pledged one and if so whether the pledge release order produced by the holder is correct.

19. What action do you make after checking?
Compare the details in the manuscript application with the one available on the certificate
Submit the manuscript application, pledge release order, if any and the original certificate to the Postmaster

20. Action by the Postmaster
Verifies the certificate, manuscript application and pledge release order, if any.
Endorses remark, “ Compared the particulars of the certificate and found correct”
Authorises transmission of the application to his divisional office.
Returns the certificate and documents to PA 20

21. How will you dispose the application?
Return certificate in original to the holder
Return pledge release order, if any, to the holder
Date stamp the application
Forward the application to your Divisional office by Registered Post 21

22. What advise do you give the customer?
Please keep the certificates and pledge release order(if any) safely
Please attend the office after 21 days with certificate in original and pledge release order, if any in original

23. If you are PA in issuing office, what will you check?
Check that the application was received only through your divisional office by registered post
Refer to the original application from the guard file
Verify entries available on the manuscript application with that available on the original application
Check that the date stamp of the office in which the application was submitted is available
compare the signature available on both applications

24. If you are PA in issuing office, what will you check?
Check that the maturity period is over
If not, check period of non-encashability has expired.
Check the certificate is not the one which has been reported lost or stolen
Check that the certificate has not been attached by a court of law.
Check the certificate is not the one in lieu of which a duplicate has been issued.
Check the certificate is pledged or not
Submit both the application to Postmaster 24

25. Action by Postmaster – Office of issue
Verifies both applications
Makes remarks “Verified. Pay to holder” on the manuscript application, if the signature tallies
Makes remarks “Verified. Pay on identification” on the manuscript application, If the signature does not tally
Gets the manuscript application affixed with date stamp. 25

26. Action by Postmaster – Office of issue
Makes a note regarding the verification made and forwarding of application to …… office in the remarks column of the application for purchase against the original entry of the certificate
Signs below the certificate in the manuscript application form and the original application for purchase
Authorises retransmission of the manuscript application to his Divisional office
Returns all the documents to PA

27. What action will you take for despatch?
Despatch application in manuscript to his Divisional office by registered post
File the receipt for registered article along with the forwarding letter received from the divisional office with the application for purchase
File the forwarding letter from your office for retransmission to divisional office also
Keep the application guard file in safe custody. 27

28. At office of discharge Customer presents Matured certificate
Pledge release order, if any
Application for purchase of fresh certificate, if any 28

29. What advise do you give to the investor?
Inform him of the maturity value payable(equip yourself with calculation of interest)
Request him to fill up this amount on the reverse of the certificate
Request him to sign the certificate with date

30. What action will you take for discharge?
Compare the signature of the holder on the certificate with the one available on the application on manuscript
Make entries of retransfer to the pledger, if the certificate is under pledge and the pledge release order is correct in all respects
If the signature tallies submit all the documents to Postmaster
Ensure proper identification of the purchaser, If the manuscript application contains a remark that “Verified. Pay on proper identification” and submit all the documents to Postmaster 30

31. Action by Postmaster Verifies the documents
Ensures that the identity of the holder is established satisfactorily
Verify the local address of the holder
Makes endorsement on the certificate “retransferred to ___________” in case of a pledge
Passes pay order on the certificate with signature and date stamp
Returns Certificate and other documents to PA 31

32. What action will you take for payment?
Payment should be only through account payee cheque irrespective of the amount
If the discharge is for issue of fresh certificate, take action to issue eligible denomination of certificate as per procedure prescribed for issue of such certificate
Retain the discharged certificate for follow up action along with manuscript application 32

33. What official entries will you make after discharge?
Enter date of payment on the manuscript application.
Prepare advice of payment in form NC-10 in triplicate (Have a look)
Submit all documents to Postmaster 33

34. How to make NC 10?
Prepare it in triplicate for each office of issue separately
Mention whether the advice relates to NSC or KVP
Note the office of issue and its HO
Note the name of your office and HO
Note date of payment
Note the serial number of the certificate(s) with prefix letters
Note the denomination of the certificate(s) listed
Note the date of issue of certificates
Note the name of holder
Note the registration number in the remarks column
Affix date stamp
Gets it verified and signed by the postmaster
Fill in the letter number and date of forwarding letter

35. Action by Postmaster Verifies all documents
Gets MO oblong stamp impression affixed on the reverse of Discharged Certificate.
Signs NC – 10
Returns all the documents to PA 35

36. How will you dispose NC 10?
File the original copy of NC 10 with discharge journal(we will see later)
Forward 2 carbonic copies of NC 10 to the office of registration by registered post

37. If you are a PA in issuing office how will you dispose NC 10?
Note the date of encashment in the reverse of the application form against each certificate
Fill in the certificate portion on the reverse of triplicate copy of NC 10
Get the application and NC 10 verified and signed by the postmaster
Affix date stamp on both copies of NC 10
File one copy of the NC 10 with application for purchase
Forward the triplicate copy of NC 10 to the Postal accounts office by registered post with prescribed certificate

38. PLEDGING OF CERTIFICATE
Pledging of Certificate can be done at any time before its maturity to :
President of India / Governor of State
Reserve Bank / Schedule Bank / Co-op Bank or Society
Corporation or Government company
Local authority like Panchayat, Municipality, City corporation
Signed application (NC-41) both by the holder and pledgee with certificate are presented

39. PLEDGING OF CERTIFICATE….
The pledgee should furnish a declaration either on NC-41 or separate paper
A fee of Rs.5/- per NSC and Rs.1/- per KVP should be paid in cash which is credited in UCR
PA compares signature of holder and other particulars of certificate on NC-41 with original application and record of Sanchay post
Pass necessary remarks on certificate and original application

40. PLEDGING OF CERTIFICATE….
Impress oblong stamp on NC-41 and file it with original application
Return the NSC to the Presenter
During the period of pledge, the pledgee is deemed to be the holder of the certificate

41. Nomination
Nomination register maintained at office of registration( HO or SO)
Nomination can be cancelled or changed by holder
No fee for fresh nomination
For Cancelled or change Fee in shape of postage stamp for KVP Rs1/-R5/-for NSC certificate

42. Duplicate certificate
Apply in prescribed form NC-29 at office of registration( HO or SO)
Fee Rs5/- for NSC & Rs1/- for KVP Per certificate, Credited in UCR
HO is competent to issue Duplicate certificate
Indemnity Bond & Bank Guarantee required but there are certain exceptions