National Savings Certificates (VIII Issue) Amendment Rules, 2011 - Amendment in rule 15A
NOTIFICATION NO.G.S.R. 744(E), DATED 4-10-2011
In exercise of the powers conferred by Section 12 of the Government Savings Certificates Act, 1959 (46 of 1959), the Central Government hereby makes the following rules further to amend the National Savings Certificates (VIII Issue) Rules, 1989, namely:-
1. (1) These rules may be called the National Savings Certificates (VIII Issue) Amendment Rules, 2011.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the National Saving Certificates (VII Issue) Rules, 1989, in rule 15A, the words "for a maximum period of two years" shall be omitted.
The effect shall be that now post maturity interest shall be paid on NSC VIII th issue for unlimited period. This is good decision of teh Government.
Post-maturity interest.
15A. Where repayment of the amount, inclusive of interest, under rule 15 has become due but has not been made, interest shall be allowed on the amount due for a maximum period of two years from the date of maturity to the date of repayment of the amount subject to the following conditions, namely:
(a) The interest shall be simple and shall be calculated at the rate applicable from time to time to savings accounts of the type of single or joint account.
(b) For the purpose of payment of interest, any part of the period which is less than one month shall be ignored.
(c) The interest shall be paid to the depositor in lump sum at the time of repayment of amount due.]
CA Paras ChhajedFCA, DISA (ICAI)
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