National Savings Certificates, popularly known as ''NSC'', is an Indian Government
savings bond A savings bond is a government bond designed to provide funds for the issuer while also providing a relatively safe investment for the purchaser to save money, typically a retail investor. The earliest savings bonds were the war bond programs of Wor ...
, primarily used for small savings and
income tax
An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Tax ...
saving investments in
India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
. It is part of the
postal savings system
Postal savings systems provide depositors who do not have access to banks a safe and convenient method to save money. Many nations have operated banking systems involving post offices to promote saving money among the poor.
History
In 1861, G ...
of
India Post
India Post is a government-operated postal system in India, part of the Department of Post under the Ministry of Communications. Generally known as the Post Office, it is the most widely distributed postal system in the world. Warren Hastings ...
.
These can be purchased from any Post Office in
India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
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.
Other similar government savings schemes in India include:
Public Provident Fund (PPF), Post Office Fixed Deposit, Post Office Recurring Deposit, etc. 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
As of April 2016,
Ministry of Finance A ministry of finance is a part of the government in most countries that is responsible for matters related to the finance.
Lists of current ministries of finance
Named "Ministry"
* Ministry of Finance (Afghanistan)
* Ministry of Finance and Ec ...
enabled purchasing and redeeming of these bonds in electronic form and financial institutions no longer issue a physical pre-printed certificate.
See Also
*
National Savings Schemes
References
External links
{{commons category, National Savings in India
National Savings Certificates (NSC)at
India Post
India Post is a government-operated postal system in India, part of the Department of Post under the Ministry of Communications. Generally known as the Post Office, it is the most widely distributed postal system in the world. Warren Hastings ...
Revision of interest rates for small savings schemes 26 March 2012Revision of interest rates for small savings schemes 31 March 2015Revision of interest rates for small savings schemes 29 September 2017Revision of interest rates for small savings schemes 27 December 2017Revision of interest rates for small savings schemes 28 March 2018
Tax-advantaged savings plans in India
Postal system of India
Government bonds issued by India
Postal savings system