National Savings Certificates (India)

National Savings Certificates, popularly known as NSC, is an Indian Government savings bond, primarily used for small savings and income tax saving investments in India. It is part of the postal savings system of India Post.

Both sides of 1953 50R Post Office National Savings Certificate.

These can be purchased from any Post Office in India by an adult (either in his/her own name or on behalf of a minor), a minor, a trust, and two adults jointly. These are issued for five and ten year maturity and can be pledged to banks as collateral for availing loans. The holder gets the tax benefit under Section 80C of Income Tax Act, 1961.[1][2][3]

Other similar government savings schemes in India include: Public Provident Fund (PPF), Post Office Fixed Deposit, Post Office Recurring Deposit, etc.[4] The certificates were heavily promoted by the Indian government in the 1950s after India's independence, to collect funds for nation-building

Discontinuation of Physical Certificate

The existing system of physical pre-printed certificates for NSC shall stand discontinued w.e.f. 1.4.2016 and shall be replaced by ‘National Savings Certificate' Certificate on electronic mode (e-mode). Till the CBS system transits to that e-mode, banks and post offices may choose to issue a physical certificate recorded on a passbook.

Further readingEdit

  • "Revision in Interest Rates of Small Savings Scemes w.e.f. 1st April 2013" (PDF). New Delhi: Department of Posts, Ministry of Communications & IT. 26 March 2013. Archived from the original (PDF) on 31 March 2015. Retrieved 31 March 2015.
  • Mukerji, Chandralekha. "10-year National Savings Certificate discontinued". The Economic Times. Retrieved 8 January 2016.


  1. ^ "National Savings Institute". National Savings Institute. 2005. Archived from the original on 19 December 2013. Retrieved 31 March 2015.
  2. ^ "All you wanted to know about National Savings Certificates". Money Control. 9 November 2012. Retrieved 17 March 2013.
  3. ^ "Scrap NSC, Kisan Vikas Patra: RBI panel". The Times of India. 23 July 2004. Archived from the original on 26 November 2013. Retrieved 17 March 2013.
  4. ^ "Interest on savings schemes cut". The Hindu. 15 January 2000. Archived from the original on 14 July 2014. Retrieved 16 March 2013.

External linksEdit