Revision of interest rates for Small Savings Schemes- discontinuation of physical pre-printed NSC and KVP certificates

Revision of interest rates for Small Savings Schemes

F.NO. 1/0412016-NS.II
Government India
Ministry of Finance
Department of Economic Affairs
(Budget Division)

North Block, New Delhi
Dated: 13.05.2016

OFFICE MEMORANDUM

Subject: Revision of interest rates for Small Savings Schemes- discontinuation of physical pre-printed NSC and KVP certificates — regarding.

1 .The undersigned is directed to refer to this Department’s 0M of even number dated 23rd March. 2016, vide which the modalities of discontinuing pre-printed KVP and NSC certificates from 01 _D4.2016 were stated. The current 0M states the reconsidered decision in this regard, in supersession of the 0M of even number dated 23″ March, 2016.
Date of implementation

2. In view of difficulty expressed by the Department of Posts Vide their D O Letter No.61-01/2016-SB dated 07.04.2016: the date tor discontinuation of pre-printed KVP and NSC certificates in Post Offices and Banks. is being postponed by a quarter, to 01.07.2016. All banks and the Department of Posts are requested to return the remaining stock of physical pre—printed KVP/NSC certificates at the close of business on 30.6.2016 ISP. Nasik

3. It may be noted that no physically pre-printed KVP and NSC certificates may be issued On or after 1.7.16 by banks or post Offices.

TWO modes of issue Of NSC/KVP certificates on and after I .07.2016

4. The NSC/ KVP certificates Shall be issued in the following 2 modes on and after 1.07.2016

a) Exclusive e-mode: The format for e-mode is given in Annex I for KVP and NSC. The part A of the format is to be made accessible for viewing by a customer online in a non-printable form and Part B of the format needs to be maintained as part of the database only, Any customer can apply for viewing of NSC or KVP through online secure system for which he/she has to open savings account (if Savings Account is not already opened) and apply for Internet Banking before purchase of NSC or KVP. A customer shall have access of only his/her own deposit under this mode at all times.

b) Passbook mode (e.mode format printed or recorded on a passbook): Under this mode, the format for e-mode as given in Part A of Annex I (or KVP and NSC. shall be either printed or entered manually on a passbook and such Passbook should be issued with physical signature (in blue ink) of the authorized official. Manual entries should be made only if either printer is not supplied or it is not in a working condition. Efforts should be made to provide adequate Passbook printer: to all post Offices and bank branches authorized to handle Small Savings schemes.

5.The Government advises the use of -exclusive e-mode” over the “passbook mode”, wherever possible. The choice of the mode (one or multiple modes) may ideally be left to the customer unless the infrastructure of the issuing office/branch restricts the compliance with any particular mode. If any customer wants to replace Passbook mode exclusive e-mode, the passbook may be collected back and destroyed cancelling ail the pages by the authorized official. So far as possible, customer should be convinced to opt for “exclusive e-mode”. This is to facilitate the transition to a paperless system.

READ MORE : Finance Ministry Order