Update on Issuance of Interest Certificates for NSC

The Ministry of Communications, Department of Posts, Government of India, has issued SB Order No. 17/2023 dated 24.08.2023 regarding the issuance of interest certificates for National Savings Certificates (NSC). The order addresses the issue of grievances related to the non-issuance of interest certificates by post offices based on the annual accrual of interest.

According to Rule 5(3) of the NSC Scheme 2019, it is mandated that a certificate of annual accrual of interest must be provided by the accounts office to the account holder upon request. Currently, interest certificates are generated from Finacle, the postal banking software. However, Finacle lacks the capability to generate interest certificates based on the accrual of annual interest for NSCs. As a result, these certificates need to be prepared manually and issued to depositors upon their request.

Issuance of interest certificate for National Savings Certificate

SB Order No. 17/2023

No. FS-10/2 7/2020-FS-DOP
Government of India
Ministry of Communications
Department of Posts
(Financial Services Division)

Dak Bhawan, New Delhi – 110001
Dated: 24.08.2023

To
All Head of Cireles / Regions

Subject: Issuance of interest certificate for National Savings Certificate – Reg.

Madam / Sir,

It has been noticed that many grievances are received in this office in connection with the non-issue of intercst certificate By the post offices on the bases of the annual accrual of interest.

  1. In accordance with the Rule 5(3) of NSC scheme 2019, “A certificate of annual accrual of interest shail be issued by the accounts office, on demand, to the account holder”.
  2. At present, interest certificates are to be issued by the post offices by generating from Finacle. However, there is no provision in Finacle to generate interest certificate on the basis of accrual of annual interest and hence the same is to be prepared manually for issue to the depositors on demand, in respect of NSC. A proforma, in which the certificate of annual accrual of interest certificate is, to be issued by the post offices is attached herewith.
  3. The Annual Accrual Interest Tables are available on India Post Website which may be referred by the post offices, for calculation of annual accrual of interest in case of NSCs.
  4. Hence, till the provision is made in Finacle for generation of interest certificate on accrual of annual interest basis, post offices should issue the interest certificate in the proforma attached herewith.
  5. It is requested to circulate to all the offices concerned for information, guidance and necessary action.
  6. This is issued with the approval of the Competent Authority.

Yours faithfully,

Enel: As Above.

(T C VIJAYAN)
Assistant Director (SB-I)

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