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Union of India - Section

Section 16 in National Savings Certificates (VIII Issue) Rules, 1989

16. Premature encashment.

(1)Notwithstanding anything contained in rule 15 and subject to sub-rule (2), (3) and (4), a certificate may be prematurely encashed any time 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 pledgee being Gazetted Government Officer when the pledge is in conformity with these rules; or
(c)when ordered by a 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 discount.
(4)
(i)If a certificate is encashed under sub-rule (1) after expiry of three years from the date of certificate purchased before the 1st day of March 2001, the amount payable, inclusive of interest accrued under rule 15 and after adjustment of discount, shall be as specified in the Table given below for a certificate of Rs. 100 denomination and at a proportionate rate for a certificate of any other denomination.
Period from the date of the certificate to thedate of its encashment Amount payable of interest (in)
1. 3 years or more but less than 3 years and 6months 132.00
2. 3 years and 6 months or more but less than 4years 138.50
3. 4 years or more but less than 4 years and 6months 145.00
4. 4 years and 6 months or more but less than 5years 152.00
5. 5 years or more but less than 5 years and 6months 159.00
6. 5 years and 6 months or more but less than 6years 166.50
(ii)If a certificate is encashed under sub-rule (1) after expiry of three years from the date of certificate purchased on or after the 1st day of March 2001 but before the 1st day of March 2002, the amount payable, inclusive of interest accrued under rule 15 and after adjustment of discount, shall be as specified in the Table given below for a certificate of Rs. 100 denomination and at a proportionate rate for a certificate of any other denomination.
Period from the date of the certificate to thedate of its encashment Amount payable inclusive of interest (inrupees)
1. 3 years or more but less than 3 years and 6months 126.43
2. 3 years and 6 months or more but less than 4years 131.71
3. 4 years or more but less than 4 years and 6months 136.90
4. 4 years and 6 months or more but less than 5years 142.48
5. 5 years or more but less than 5 years and 6months 147.98
6. 5 years and 6 months or more but less than 6years 153.89
(iii)If a certificate is encashed under sub-rule (1) after expiry of three years from the date of certificate purchased on or after the 1st day of March 2002 but before the 1st day of March 2003, the amount payable, inclusive of interest accrued under rule 15 and after adjustment of discount, shall be as specified in the Table given below for a certificate of Rs. 100 denomination and at a proportionate rate for a certificate of any other denomination.
[Period from the date of the certificate to thedate of its encashment [Substituted by Notification No. G.S.R. 711(E), dated 17.10.2002 (w.e.f. 8.5.1989).] Amount payable inclusive of interest (Rupees)
1. 3 years or more but less than 3 years and 6months 124.72
2. 3 years and 6 months or more but less than 4years 129.39
3. 4 years or more but less than 4 years and 6months 134.25
4. 4 years and 6 months or more but less than 5years 139.28
5. 5 years or more but less than 5 years and 6months 144.50
6. 5 years and 6 months or more but less than 6years 149.92]
[Inserted by Notification No. G.S.R. 501(E), dated 16.7.2019 (w.e.f. 8.5.1989).]
(iv)If a certificate is encashed under sub-rule (1) after expiry of three years from the date of certificate purchased on or after the [1st day of December, 2011,] [Substituted '1st day of March, 2003' by Notification F.NO.1/7/2011-NS-II, dated 25.11.2011 (w.e.f. 8.5.1989).], the amount payable, inclusive of interest accrued under rule 15 and after adjustment of discount, shall be as specified in the Table given below for a certificate of Rs. 100 denomination and at a proportionate rate for a certificate of any other denomination.
Period from the date of the certificate to thedate of its encashment Amount payable inclusive of interest (inrupees)
1. 3 years or more but less than 3 years and 6months 121.15
2. 3 years and 6 months or more but less than 4years 125.09
3. 4 years or more but less than 4 years and 6months 129.16
4. 4 years and 6 months or more but less than 5years 133.36
5. 5 years or more but less than 5 years and 6months 137.69
6. 5 years and 6 months or more but less than 6years 142.16
(v)[ 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 December, 2011 [1st day of April, 2012] [Inserted by Notification F.NO.1/7/2011-NS-II, dated 25.11.2011 (w.e.f. 8.5.1989).], 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.
Period from the date of the certificate to thedate of its encashment Amount payable inclusive of interest (Rupees)
(1) (2)
Three years or more, but less than three yearsand six months 123.14
Three years and six months or more, but lessthan four years 127.49
Four years or more, but less than four years andsix months 131.99
Four years and six months or more, but less thanfive years 136.65]
[Inserted by Notification No G.S.R. 163(E), dated 1.3.2002 (w.e.f. 8.5.1989).]
(vi)[ 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] [Inserted by Notification No. G.S.R. 318(E), dated 25.4.2012 (w.e.f. 8.5.1989).], 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.
Period from the date of the certificate to thedate of its encashment Amount payable inclusive of interest (Rupees)
(1) (2)
Three years or more, but less than three yearsand six months 124.60
Three years and six months or more, but lessthan four years 129.26
Four years or more, but less than four years andsix months 134.08
Four years and six months or more, but less thanfive years 139.09]
(vii)[ 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] [Inserted by Notification No. G.S.R. 397(E), dated 25.6.2013 (w.e.f. 8.5.1989).], 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.
Period from the date of the certificate to thedate of its encashment Amount payable inclusive of interest (Rupees)
(1) (2)
Three years or more, but less than three yearsand six months 124.24
Three years and six months or more, but lessthan four years 128.81
Four years or more, but less than four years andsix months 133.56
Four years and six months or more, but less thanfive years 138.48]
(viii)[ 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 2016] [Inserted by Notification No. G.S.R. 494(E), dated 11.7.2014 (w.e.f. 8.5.1989).], 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 thedate of its encashment Amount payable inclusive of interest (Rupees)
(1) (2)
Three years or more, but less than three yearsand six months 124.24
Three years and six months or more, but lessthan four years 128.81
Four years or more, but less than four years andsix months 133.56
Four years and six months or more, but less thanfive years 138.48]
(ix)[ 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 October, 2016] [Inserted by Notification No. G.S.R. 354(E), dated 29.3.2016 (w.e.f. 8.5.1989).], 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 thedate of its encashment Amount payable inclusive of interest (Rupees)
(1) (2)
Three years or more, but less than three yearsand six months 122.85
Three years and six months or more, but lessthan four years 127.13
Four years or more, but less than four years andsix months 131.57
Four years and six months or more, but less thanfive years 136.16]
(x)[ 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 2017] [Inserted by Notification No. G.S.R. 944(E), dated 30.9.2016 (w.e.f. 8.5.1989).], 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 thedate of its encashment Amount payable inclusive of interest (Rupees)
(1) (2)
Three years or more, but less than three yearsand six months 122.50
Three years and six months or more, but lessthan four years 126.72
Four years or more, but less than four years andsix months 131.08
Four years and six months or more, but less thanfive years 135.59]
(xi)[ 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 July 2017] [Inserted by Notification No. G.S.R. 382(E), dated 31.3.2017 (w.e.f. 8.5.1989).], 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 thedate of its encashment Amount payable inclusive of interest (Rupees)
(1) (2)
Three years or more, but less than three yearsand six months 122.16
Three years and six months or more, but lessthan four years 126.31
Four years or more, but less than four years andsix months 130.59
Four years and six months or more, but less thanfive years 135.02]
(xii)[ 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 October, 2017] [Inserted by Notification No. G.S.R. 863(E), dated 30.6.2017 (w.e.f. 8.5.1989).], 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 thedate of its encashment Amount payable inclusive of interest (Rupees)
(1) (2)
Three years or more, but less than three yearsand six months 121.82
Three years and six months or more, but lessthan four years 125.89
Four years or more, but less than four years andsix months 130.10
Four years and six months or more, but less thanfive years 134.45]
(xiii)[ 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 October, 2018] [Inseretd by Notification No. G.S.R. 30(E), dated 1.1.2018 (w.e.f. 8.5.1989).], 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 thedate of its encashment Amount payable inclusive of interest (Rupees)
(1) (2)
Three years or more, but less than three yearsand six months 121.14
Three years and six months or more, but lessthan four years 125.07
Four years or more, but less than four years andsix months 129.13
Four years and six months or more, but less thanfive years 139.32]
(xiv)[ 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 July, 2019] [Inseretd by Notification No. G.S.R. 957(E), dated 28.9.2018 (w.e.f. 8.5.1989).], 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 thedate of its encashment Amount payable inclusive of interest (Rupees)
(1) (2)
Three years or more, but less than three yearsand six months 122.50
Three years and six months or more, but lessthan four years 126.72
Four years or more, but less than four years andsix months 131.08
Four years and six months or more, but less thanfive years 135.59]
(xv)[ 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 July 2019, 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. [Inserted by Notification No. G.S.R. 501(E), dated 16.7.2019 (w.e.f. 8.5.1989).]
Table
Period from the date of the certificate to thedate of its encashment Amount payable inclusive of interest (Rupees)
(1) (2)
Three years or more, but less than three yearsand six months 122.16
Three years and six months or more, but lessthan four years 126.31
Four years or more, but less than four years andsix months 130.59
Four years and six months or more, but less thanfive years 135.02]
(5)Mode of payment: - The amount payable at the time of premature encashment may be rounded off to the nearest multiple of one rupee and for this purpose any amount of 50 paise or more shall be treated as one rupee and any amount less than 50 paise shall be ignored.