The amount of interest accruing on a certificate of any other denomination shall be proportionate to the amount specified in the Table above.";
(d) for the existing rule 20, the following rule shall be substituted, namely:— "20. Premature encashment—(1) Notwithstanding anything coitained in rule J9 and sublet to sub-rules
(2), (3) and (4), a certificate purchased on or after tbc 1 st c'ay of April, j 986 may be prematurely trcashu! ir.
any of thefol'owii gciremnsta,rccs, ran'e'y:—
(a) on thi death of the holder or both the holders in case of joint holders;
(b) on forfeiture by a plci a e b;i ig a Gazetted Government officer, when the pledge is in conformity with thrsc rulis;
(c) when ordered by a court of Law.
(2) If a certificate is encash d u-Ocr sub ru'e ( ') wilhir a period of o~e year from ilv- *'a+. of the c rtifkate. or.'y the face value of the certificate shall b,. payable a.u. ro irtcrest shall b : payable.
(3) If a certificate is encashed under sub rule (i) after the expiry of one year but before the expiry of three, years from the date of Certificate, the crcashmu t shall be at a discoui t.
On encashment of the certificate, an arr.ourt cquivakrt 1o the face va'u^ of the certificate tog ther with simple inURSt shall be payable. Such simple interest shall b : calculated on the face value, at the rate applicable from Hire <o t'n <- 'o sii n'e accounts under the Post Office Savii gs Account Ru1«.s, 1981, for the complete months for which the certificate has b a n held. The diffr.icc between the aforesaid simple ir.ten st and the irt r«.si aeeruii g u r i \ r ru'e 9 shall be c'eiriKc' 1O be the discount.
(4) If a c rtificp.tc is encashed urnler sub rule (1) after the expiry of thr <• years from ttv t'?te of the certificate. tlv amount payab'c lrclus.ve of interest actruec" ui e'. r rule 19 and after adjustment of discount, shall be ;'.s <,p. eificd in th< Table be'ow for a certificate of Rs 100 I'enomuatiori anO at a ito -ori'0 iato rat.- for a certificate of any other denomination .
TABLE Pi rio J from the i at - of the certificate to the date of its encashment !
3 3 4 4 5 5 years or more, but kss than years and 6 mo.iths or n>ore, Amount payabb, i. - elusive of ipt r l>t Rs.
3 years and 6 months but li ss than J years years or more, but less than 4 years and 6 months years a'vi 6 moi ths or more, years or more, but kss than years and 6 months or more, but itss thar 5 y.ars 5 years ant' 6 months but less than 6 ye ars S 32.00
138.50
145.00 15? 00 159 00 '66 50"
(e) in Form i and Form I A, in the statement v.nc\r paragraph (I), the figures "10" sr all be om.ttte.
[F.No. 2/:8/84-NS riii)] Note:—The priieipal rules were issua v k t G.S.R. 3C9 (E) catcd 24-4-81 and amended vide G.S.R. 751 (E) c etcd 10-12-82, G.S-R. 259(E)c"ated 11-3-83, G.S.R. 797(E) dated 24-1-0-83 and G.S.R. 7l5(E) istcd 4-9-1985.
6 THE GAZETTE OF fNDIA : EXTRAORDINARY |PARI II—SEC. 3(i)J 7 G S R. N ) 19<i (E) f i exercise of the powers, conferred by ^e; 10 i 12 oi the Go/eminent Savings CeiUfic ics> A.ct, 1959 (46 ot 1959), the Central Government herebv makes the following rules further to amend the National Savings Certificates {VII ls=ne) Rule 1981, namely — 1 (1) These rules may be called the National Saving-* Certificate? (VII Issue) (Second Amendment) Rules, 1986
(2) Thev <-hall come into force on the 1 st day of April 1986 "> In the National Savings Certificates (Vll Issue) Rules 1981, for the existing itile 20, the following rule sh<ill be substituted, nameh — ""0 Prerrnture encashment—(i) Notwithstanding anv thug contained in rule 19 aid subject to sub-rule (2) and (3) a Lortifu-ace parchased on or after the 1st day of April, 198(i may be pr^matur^h encashed in any of the following circumstances, namely —
(a) on (he death of the holder or both the holders in case of joint holders,
(b) on f jrfeiturx by a pledge being a Gazetted Govern me it Officer when a plcdjc ic in conformity wi'h the provisions of these rules,
(c) whe.n ordered b> a couit of [av\
(2) It a certificate is encashed under sub rule (1) the face value ot the certificate shall be pa\able after deducting therefrom di eouit as specified below — d) If the certificate is encashed discount equivalent to before the expnv of one year the inteitst paid or from the date of the payable under subcertificate rule (2) of rule 19
(u) If the certificate is encashed discount equivalent to af er the exp ry of one ye » the difference b tween but before the expiry of (a) the interest paid three years Irom the date or payable u i 'er ub of the certificate rule (2) if iule 19 and fb) simple interest cal culated on the face vpluc ot the certrfi cate at the ra'e appli cible from time to tim^ to Migle recounts under the Post Office Savings Account Rules 1981 for the complete months for which the certificate has been held
(3) If a e mfbate >s enMshed under sub rule (1) after the txpirv f three >eir fi om the date ot the certificate th amot nt payabL after adjustment if disciunt Maall be as specified in the Tabl ielo v — TABLE Arrnunt payable after adjustment of discount on premature enrollment of a certificate Pu iod from the date ot the certificate to the date of its encashemeni Amount payable (Rs ) on a certificate of Rs 100 denomination 3 \ears 11 more but 'ess than 3 years and 6 months 3 yeats and 6 months or more, but less thin 4 years 4 years or more, but le's than 4 years and 6 months 4 years and 6 months or more but less than 5 vears 5 years or more, but less than 5 years and 6 months 5 years and 6 months or more, but less than 6 years 91 55" 89 90 88 15 86 35 84 45 82 45 Note —Ths amount payable after adjustment of discount on a certificate of anv other denomination shall be proportionate to the amount specified in the Tatle ?bo\e
(4) Notwithstanding anything contained in sub-rule
(1), where a certificate has been purchased on or after the 1st March, 1983, by or on behalf of an individual specified in the proviso to rule 8 and payment therefor has been made in any ot the modes specified in the said proviso, the amount payable on encashment of sucr ceitificatc aftei the expir> of three >e»rs from the date of the certificate after adjustment of discount, shall be as specified in the Table below TABLE Amount pa\able aftet adjustment of discount on piemature encashment ot a cei tificate Period from the date of certifi- Amount payable (Rs) cate to the dote of its encashment on a certificate of Rs 100/- denomination.
3 years or more, bu( U>s than 3 vears and 6 in %nths 3 vears and 6 months or more but less than 4 years 4 years or more but less than 4 vesis and 6 months 4 year1; and 6 months or more but less than 5 vLars 5 \ears or more but less than 5 years and 6 months 5 yeats and 6 months or more but Ic ŝ than 6 vears 88 15 85 85 83 45 80 90 78 25 75 45 Note —The amount payable af er adjustment ot discount on a certificate of a VA oth r denomination shall be proportionate to the amount specified in the Table above [F No 2/28/84-NS (iv)l K S SASTRY Jt Secy Note —The principal rules were published \idc G S R 310
(b) dated 24 4 81 end .minded \ de G S R 752 (E) aated 10-12 82 G S R 260 (E) dated U-3-83 G S R 798 (E) dated 2 4 10 83 and G S R 716 (t) da ed 4 9 8̂ and G S R No 85(E) dated 3-2 86.
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