SAVING CERTIFICATES AT A GLANCE WELCOME SAVING CERTIFICATES AT A GLANCE

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

Comparison chart Feature NSCVIII issue NSC IX issue Date of introduction 08.05.89 1-12-2011 Denomination Rs.100, 500/- 1000/- 5000/- & 10,000 Maturity Period 5 Years 10 Years Maturity Value per Rs 1000/- Rs. 1523.50 (01.04.2012) Rs 1516.20 (01.04.2013) Rs. 2388.70 (01.04.2012) Rs 2366.00 (01.04.2013) 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

Comparison chart Feature KVP( discontinued w.e.f 01-12-11) Date of introduction 01.04.88 Denomination Rs 100, 500/- 1000/- 5000/- 10,000 50,000/- 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

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

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,

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

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

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

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

PPT 6.2.1 Rule No.

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

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

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]

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

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

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

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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