Denominations in which certificates shall be issued:
The National Savings Certificates (VIII Issue) shall be issued in denomination of Rs.100, Rs.500, Rs.1000, Rs.5,000, Rs.10,000 and such other denominations as may be notified by the Central Government from time to time.

Types of Certificates and Issue thereof:
1)The certificates shall be of the following types, namely:-
a) Single Holder Type Certificates
b) Joint 'A' Type Certificates
c) Joint 'B' Type Certificates
(2) (a) A Single Holder Type certificate may be issued to;-
i. an adult for himself or on behalf of a minor or to a minor.
ii. A trust.
(b) A joint 'A' Type certificate may be issued jointly to two adults payable to both the holders jointly or to the survivor
c) A joint 'B' Type certificate may be issued jointly to two adults payable to either of the holders or to the survivor.

Upper Purchase Limit:-
Certificates may be purchased for any amount.

Procedure for purchase of certificates:-
Any person or body specified desiring to purchase a certificate shall present at a Post Office in application in the prescribed form, either in person or through an authorised agent of the Small Savings Schemes.

Mode of Payment:-
Payment for the purchase of a certificate may be made to a post office in any of the following modes, namely;
i) cash;
ii) a locally executed cheque, pay order or demand draft drawn in favour of the postmaster.
iii) by presenting a duly signed withdrawal form with the pass book for withdrawal from the Post Office Savings Bank Account.
iv) surrender of a matured old certificate duly discharged as follows-"Received payment through issue of fresh certificate vide application attached".

Issue of Certificates:
i)Where payment for the purchase of a certificate is made by a cheque, pay order or demand draft, the certificate shall not be issued before the proceeds of the cheque, pay order or demand draft, as the case may be, are realised and the date of such certificate shall be the date of encashment of the cheque, pay order or demand draft, as the case may be.
ii)In other conditions of payment mode, a certificate shall normally be issued immediately, and the date of such certificate shall be the date of payment.
iii)If for any reason a certificate cannot be issued immediately, a provisional receipt shall be given to the purchaser which may later be exchanged for a certificate and the date of such certificate shall be as specified in sub-rule (1) and sub-rule(2) as the case may be.

Certificate in Lieu of Proceeds of Old certificates:-
A holder of an old certificate entitled to encash that certificate may make an application in the relevant form for the grant of a certificate. On receipt of such an application the applicant will be issued a new certificate. The date of issue being the date on which the old certificate duly discharged is presented.

Transfer from one post office to another:-
i.A certificate may be transferred from a post office at which it stands registered, to any other post office on the holder or holders making an application in the prescribed form at either of the two post offices.
ii.Every such application shall be signed by the holder or holders of the certificate.
iii.Provided that in the case of joint 'A' Type Certificate or a Joint 'B' Type certificate, the application may be signed by one of the joint holders if the other is dead.

Transfer of Certificate from one person to another:
1.A certificate may be transferred with the previous consent in writing of an officer of the post office as specified below:
A)Cases in which transfer can be sanctioned by post-master of the post office where the certificate stands registered :
i) From the name of a deceased holder to his heir.
ii) From a holder to a court of law or to any other person under the orders of court of law.
iii)From a single holder to the names of joint holders of whom the transferee shall be one.
iv)From joint holders to the name of one of the joint holders.
B) All other cases Head post-master

2.An authorised post-master as referred in sub-rule (1) shall give his consent to the transfer of a certificate only if the following conditions are satisfied, namely;-
a. the transferee is eligible to purchase certificates.
b. The transfer is made after the expiry of a period of at least one year from the date of the certificate or where the transfer is sought before the expiry of such period, the transfer falls under certain specified categories.
3.Without prejudice to the provisions of sub-rule(2), an authorised post-master shall give his consent to the transfer of a certificate held on behalf of a minor only if at the time of the proposed transfer, a parent or the guardian referred to in sub-clause (I) or, as the case may be, sub-clause(ii), of clause(b) of section 5 of the Act, certified in writing, that the minor is alive and that such transfer is in his interest.

4.In every case of transfer, other than a transfer under, the original certificate shall be duly discharged and the new certificate bearing the same date as that of the original certificate surrounded shall be issued in the name of the transferee.

Pledging of Cetificates:
i. On an application being made in the prescribed form by the transferer and the transferee, the post-master of the office of the registration may, at any time, permit the transfer of any certificte as secuity to -
a. the President of India or Governor of a State in his official capacity;
b. the Reserve Bank of India or a scheduled bank or a comparative society including a cooperative bank.
c. A corporation of a Government company; and
d. A local authority.

ii. When any certificate is transferred as security, the post-master of the office of the registration shall make the following endorsement on the certificate, namely;-
"Transferred as security to ……………………………….."

iii. The transferee of a certificate under this rule shall, until it is re-transferred under sub-rule (4), be deemed to be the holder of the certificate.

iv. A certificate transferred under sub-rule(2), may, on the written authority of the pledgee, be re-transferred with the previous sanction in writing of the authorised post-master and when any such re-transfer is made, the post-master of the office of registration shall make the following endorsement on the certificate namely;-
"Re-transferred to …………………………….."

Replacement of lost or destroyed certificate:
i.If a certificate is lost, stolen, destroyed., mutilated or defaced, the person entitled thereto may apply for the issue of a duplicate certificate to the post office where the certificate is registered or to any other post office in which case the application will be forwarded to the post office of registration.

ii. Every such application shall be accompanied by a statement showing particulars such as number, amount and date of the certificate and the circumstances attending such loss, theft, destruction, notification or defacement.

iii. If the officer in charge of the post office of registration is satisfied of the loss, theft, destruction, multilation or defacement of the certificates be shall issue a duplicate certificate on the applicant furnishing an indemnity bond in the prescribed form with one or more approved sureties or with a bank's guarantee.
Provided that where the face value or the aggregate face value of the certificate or certificates lost, stolen, destroyed, multilated or defaced is Rs.500 or less, a duplicate certificate or certificates may be issued on the applicant furnishing an indemnity bond without any such surety or guarantee.
Provided further that where such application is made with respect to certificate mutilated or defaced, of whatever face value, a duplicate certificate may be issued without any such indemnity bond,surety or guatantee if the certificate mutilated or defaced is surrendered and the certificate is capable of being identified as the one originally issued.
v. A duplicate certificate issued under sub-rule(3) shall be treated a equivalent to the original certificate except that it shall not be encashable at a post office other than the post office at which such certificate is registered without previous verification.

Nomination:
i. The single holder or joint holders of a certificate may by filling in necessary particulars in Form 1 at the time of purchasing the certificate, nominate any person who, in the event of death of the single holder or both the joint holders, as the case may be, shall become entitled to the certificate and to the payment of the amount due thereon. If such nomination is not made at the time of purchasing the certificate, it may be made by the single holder, the joint holders or the surviving joint holder, as the case may be, at any time after the purchase of the certificate but before its maturity, by means of an application to the post-master of the office at which the certificate stands registered.

ii. There shall not be more than one nominee, except in cases where the denomination of a certificate is Rs.500 or more.

iii. No nomination shall be made in respect of a certificate applied for and held by or on behalf of a minor.

iv. A nomination made by the holder or holders of a certificate under this rule may be cancelled or varied by submitting an application affixing postage stamps of the value specified together with the certificate to the post-master of the post office at which the certificate stands registered.

v. Separate application for nomination or cancellation of a nomination or a variation of a nomination shall be made in respect of certificates registered on different dates.

vi. The nomination or the cancellation of a nomination or the variation of a nomination shall be effective from the date it is registered in the post office, which shall be noted on the certificate.

Encashment on maturity:
The maturity period of a certificate of any denomination shall be six years commencing from the date of the certificate. The amount, inclusive of interest, payable on encashment of a certificate at any time after the expiry of its maturity period shall be Rs.174.52(approx.) for denomination of Rs.100/- and at proportionate rate for any other denomination. The interest that accrues to the holder or holders of the certificate at the end of each year and the interest on accrued at the end of each year upto the end of the fifth year, shall be deemed to have been re-invested on behalf of the holder and aggregated with the amount of face value of the certificate.

Premature encashment:
1)A certificate may be prematurely encashed 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
b. when ordered by a court of law.

2) If a certificate is encashed 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 certificte, 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 for the complete months for which the certificate has been held. The difference between the aforesaid simple interest and the interest accruing shall be deemed to be the discount.

4)After the expiry of three years from the date of the certificate, the amount payable inclusive of interest accrued and after adjustment of discount, shall be as specified by the government from time to time.

Place of encashment:
A certificate shall be encashable at the Post office at which it stands registered. Provided that a certificate may be encashed at any other post office if the officer-in-charge of that post office is satisfied on verification from the office of its registration that the person presenting the certificate for encashment is entitled thereto.

Discharge of certificate:
1. The person entitled to receive the amount due under a certificate shall, on its encashment, sign on the back thereof in token of having received the payment.

2. In the case of certificate purchased on behalf of a minor who has since attained majority, the certificate shall be signed by such a person himself, but his signature shall be attested by the person who purchased it on his behalf or by any other person who is known to the post-master.

3. A certificate of discharge may be issued by the Post office to any person encashing a certificate on payment of the fee.

Encashment of minor's certificate:-
1) A person encashing a certificate on behalf of a minor shall furnish a letter from the parent or guardian of the minor to the effect that the minor is alive and that the money is required on behalf of the minor.

2) When the nominee is a minor, the person appointed while encashing the certificate, shall furnish a certificate that the minor is alive and that the money is required on behalf of the minor.

Payment to heirs:
If a person dies and is at the time of his death the holder of a Savings Certificate and there is no nomination in force at the time of his death and probate of his will or letters of administration of his estate or a succession certificate granted under the Indian Succession Act, 1925 (39 of 1923) is not, within three months of the death of the holder, produce to the authority, then if the sum due on the Savings Certificate does not exceed Rs.20000, the specified authorities may pay the same to any person appearing to it to be entitled to receive the sum or to administer the estate of the deceased.

Encashment of Certificates held by Army, Air Force and Navy Personnel:
Where a certificate is held by an Army person and such person dies or deserts, the Commanding Officer of the Corps, department, unit or ship to which the deceased or deserter belonged or the Committee of Adjustments, as the case may be, may send a requisition to the officer-in-charge of the post office where the certificate stands registered to pay him or it, the amount due under the certificate; and the officer-in-charge of the Post Office shall be bound to comply with such requisition even though there is in force at the time of death or desertion of holder of the certificate a nomination made in favour of any person.

Rights of nominee:
1.In the case of death of the holder of a certificate in respect of which a nomination is in force, the nominee or nominees shall be entitled at any time before or after the maturity of the certificate to;-
a. encash the certificates, or
b. sub-divide the certificate in appropriate denomination in favour of individual nominees or two adult nominees jointly.

2. For the purpose of sub-rule(1), the surviving nominee or nominees shall make an application to the post-master of the office of registration, supported by proof of death of the holder and of deceased nominee or nominees, if any.

3. If there are more nominees than one, all the nominees shall give a joint discharge of the certificate at the time of receiving the payment or sub-division.

Conversion from one denomination to another:
1.Certificates of lower denomination may be exchanged for a certificate or a certificates of higher denomination of the same aggregate face value or a certificate of higher denomination may be exchanged for the certificates of lower denomination of the same aggregate face value.
Provided that certifictes bearing different dates shall not be combined for being exchanged for certificate or certificates of higher denomination.

2.The date of the certificate or certificates issued in exchange shall be the same as that of the original certificate or certificates surrendered and not the date on which the exchange is made.

Income Tax:
Interest on these certificates shall be liable to tax under the Income-tax act, 1961on the basis of the annual accrual but no tax shall be deducted at the time of payment of discharge value.

Responsibility of the Post Office:
The Post office shall not be responsible for any loss caused to a holder by any person obtaining possession of a certificate and fraudulently encashing it.