Holding NSC and KVP in physical mode is the biggest concern for all of us. To avoid such difficulties, the Government launched NSC and KVP in e-mode and Passbook mode effective from 1st July, 2016. Let us see the features.
We all fond of investing in NSC and KVP of post office schemes. However, the hardest part is to hold the physical certificate until maturity. Either we misplace it or loses it completely.
Hence, to avoid such difficulties Government launched the NSC and KVP in e-mode and Passbook mode. From now onward whoever invest in the NSC or KVP must have them only in these two modes. The issue of physical certificate was discontinued.
Let us see the features of these two options.
NSC and KVP in e-mode
- You have to opt for this option only if you have a savings account with the Bank/Post Office.
- You have to apply for internet banking.
- Once internet banking is facilitied, then you can view all your holding exactly like online Bank FDs or RDs.
- There will not be any seriel number from now onward. There will be only Account/Registration numbers.
- Minimum of Rs.1,000 and Rs.100 NSC and KVP be issued in e-mode and passbook mode, respectively (and in multiples of Rs.1,000 and Rs.100 respectively).
- All non CBS Branches of Post Offices will issue only Passbook mode of NSC and KVP.
NSC and KVP in Passbook mode
This facility is provided to those customers who not ready to go for the e – mod. Banks or Post Offices will print the transaction which shown in their account and issue a passbook. Exactly like Bank Passbook.
If you lost the passbook, then you can request for duplicate passbook by paying the prescribed fee by the Post Office and Banks.
Some features of NSC and KVP in e-mode and Passbook mode
- It is purely your right to choose either e-mode or Passbook mode. Otherwise, you can opt for both modes.
- Once you opt for Passbook mode, then you can switch to e-mode at any point of time. For this, you have to hand over the passbook.
- In case you already have pre-printed NSC and KVP (which you already invested), but lost means you can opt for this passbook mode.
How to pledge NSC and KVP in e-mode and Passbook mode?
You can only pledge the NSC and KVP held in Passbook mode. You can pledge it anywhere in India. When you request for a pledge the NSC and KVP, then your bank will send the information to concerned Post Office or Bank (where it was issued). After verifying the authenticity of investment, it will be locked by the issued Post Office or Bank Branch. The same process will continue at the time of releasing the pledge.
Once NSC or KVP is pledged, then you can’t apply for transfer from one Post Office/Bank to another Post Office/Bank. However, if NSC or KVP not pledged, then the transfer will continue as per old rules. There will not be any changes to it.
How to transfer NSC and KVP in e-mode and Passbook mode?
Here, transfer means from one person to another person. You have to apply for transfer in concerned Post Office or Bank. If the first holder having passbook mode, then he has to surrender the passbook. The new passbook will be issued to the new holder.
Banks allowed to issue KVP in e-mode and Passbook mode
- Andhra Bank
- Axis Bank
- Bank of Baroda
- Bank of India
- Canara Bank
- Central Bank of India
- Corporation Bank
- Dena Bank
- HDFC Bank
- ICICI Bank
- IDBI Bank
- Indian Bank
- Indian Overseas Bank
- Punjab national Bank
- State Bank of India
- State Bank of Bikaner and Jaipur
- State Bank of Indore
- State Bank of Mysore
- State Bank of Patiala
- State Bank of Saurashtra
- State Bank of Travancore
- Syndicate Bank
- UCO Bank
- Union Bank of India
- Vijaya Bank
This list is only for issuing of KVP certificate in e-mode and Passbook mode. However, there is no clarity about NSC. Also, as of now there is no clarify of how the Post Office and Banks will set up the system. Let us wait for more clarification.
Few posts related to NSC and KVP-
- NSC-Accrued Interest taxation and way to reduce it
- Interest of PPF KVP NSC SCSS and Sukanya Samriddhi for April-June 2016
- How to encash or withdraw NSC bought from different Post Office?
- Post Office Savings Schemes (RD, NSC, MIS, SCSS)-Premature closure rules
- All about Kisan Vikas Patra (KVP)-2014