NSC Maturity Period 5 Year wef 01.04.2016 & Interest Rate

MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 29th March, 2016

G.S.R. 354(E).—In exercise of the powers conferred by section 12 of the Government Savings Certificates Act, 1959 (46 of 1959), the Central Government hereby makes the following rules further to amend the National Savings Certificates (VIII Issue) Rules, 1989, namely:—

1. (1) These rules may be called the National Savings Certificates (VIII Issue) (Amendment Rules), 2016.

(2)   They shall deemed to have come into force on the 1^st day of April, 2016.

2. In the National Savings Certificates (VIII Issue) Rules, 1989 (hereinafter referred to as the said rules), in rule 15,-

(a) in sub-rule (6D), after the figures, letters and words “1^st day of April, 2014”, the words, figures and letters “ 1^st day of April, 2014 but before the 1^st day of April, 2016,” shall be substituted;

(b) after sub-rule (6D) and the Table relating thereto, the following shall be inserted, namely:—

“(6E) Where a certificate has been purchased on or after the 1^st day of April, 2016 the maturity period of a certificate of any denomination, shall be five years, commencing from the date of issue of the certificate. The amount inclusive of interest, payable on encashment of the certificate at any time after the expiry of its maturity period shall be Rs. 147.6 1for denomination of Rs. 100 and at proportionate rate for any other denomination. The interest as specified in the Table below shall accrue to the holder or holders of the certificate at the end of each year and the interest so accrued at the end of each year upto the end of the fourth year shall be deemed to have been reinvested on behalf of the holder and aggregated with the amount of face value of the certificate.

TABLE

Note: The amount of interest accruing on a certificate of any other denomination shall be proportionate to the amount specified in the Table above”.

3. In rule 16 of the said rules, in sub-rule (4),-

(a) in clause (viii), for the figures, letters and words “1^st day of April, 2014”, the words, figures and letters “1^st day of April, 2014 but before the 1^st day of April, 2016” shall be substituted;

(b) after clause (viii) and the Table relating thereto, the following shall be inserted, namely:—

“(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 1^st day of April, 2016, 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

[F. No. 1/4/2016-NS-II]

PRASHANT GOYAL, Jt. Secy.

Note : The principal rules were published vide G.S.R. 496(E), dated the 1^st May, 1989, and subsequently amended vide: G.S.R. 508(E), dated the 23^rd May, 1990, G.S.R. 120(E), dated the 8^th March, 1998, G.S.R. 7(E), dated the 1^st January, 1999, G.S.R. 491(E), dated the 6^th July, 1999, G.S.R. 47(E), dated the 15^th January, 2000, G.S.R. 156(E), dated the 1st March, 2001, G.S.R. 572(E), dated the 2^nd August, 2001, G.S.R. 163(E), dated the 1^st March, 2002, G.S.R. 711(E), dated the 17^th October, 2002, G.S.R. 179(E), dated the 1^st March, 2003, G.S.R. 590(E), dated the 25^th July, 2003, G.S.R. 591(E), dated the 25^th July, 2003, G.S.R. 820(E), dated the 16^th October, 2003, G.S.R. 289(E), dated the 13^th May, 2005, G.S.R. 744(E), dated the 4^th October, 2011 and G.S.R. 842(E), dated the 25^th November, 2011, G.S.R. 318(E), dated the 25^th April, 2013, G.S.R. 397(E), dated the 25^th June, 2013, G.S.R. 226( E), dated the 13^th March, 2014 and G.S.R. 494(E), dated the 11^th July, 2014.