The popular National Savings Certificate (NSC) has a tenure of 5 years. Being a rather long term investment, it is highly likely that an individual would have relocated to another place and has an NSC that needs to be encashed or redeemed.
The question then is: how to encash a NSC or redeem the NSC issued at another post office.
1. Present the NSC certificate and the identity slip.
2. In case you do not have a identity slip, then you need to make an application to the concerned post office, where you are presenting for encashment.
3. You need to mention the details of the post office where the NSC certificate was purchased.
4. The individual has to mention, his or her full name, registration number of the NSC and the present address. The address should be mentioned below the signature.
5. Once the details are verified by the concerned post master, the original NSC certificate shall be returned to the holder. Interestingly, the certificate may not be returned immediately and maybe kept for a week.
6. The post master shall dispatch the application, to the post office where the NSC was registered. If no reply is received another reminder would be sent by the post office.
7. The post office officials may make enquiries to ensure that the identity of the person handing the NSC is the same as that mentioned on the certificate.
8. A certificate may be presented for encashment at any Post Office in India doing S.B. work.
In case of death and the certificate is presented at another office, other then which it was registered, the office will take all concerned steps to ensure that the amount is passed onto the nominee after due verification.
Also read how to transfer NSC from one person to another
As regards Power of Attorney as well, the Post Master will satisfy himself with regards to all the documents submitted.
In case of invalids or illiterates, or lepers or a illiterate holder who has become incapacitated, a power of attorney should be attested by a Magistrate.
It is very important to remember, that if you are taking an NSC, it would preferably be at a post office where you are going to encash the same. This would avoid going through the hassles of encashing the NSC at another post office. One must also remember to take the identity slip when the same is being issued. This would make the job much more easier.
The NSC these days gives a slightly higher interest rate then bank deposits. With the scheme also giving tax benefit under Sec 80C of the Income Tax Act. It remains a preferred investment bet.