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
Flat, land and Property Stamps and Registration charges in Bangalore and India
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shakarsha
I read most of the comments and your answer.Thank you very much for your valuable in formations.
Basavaraj Tonagatti
Dear Shakarsha,
My pleasure 🙂
Bk
-In NSC certificate no and Account No is same or different.
-if I activate Emode ,can I download NSC ?
-I can take multiple NSC with same account po acct
Basavaraj Tonagatti
Dear BK,
For first and second doubt, approach the Post Office. For third, yes you can.
GUNESH APTE
Hi,
Have Banks started offering purchase of NSC online? I am not able to see any bank offering purchase online yet, but just want to confirm from you.
Thanks.
Basavaraj Tonagatti
Dear Gunesh,
As of now, NO.
Shivansh Seth
Please guide me to know Transfer NSC from one State PO to PO of other state.
Basavaraj Tonagatti
Dear Shivansh,
Refer my post “How to encash or withdraw NSC bought from different Post Office?“.
sahana
Is KVP a good option to invest in terms of returns? Why does it say amount will be doubled yet specify interest rate? If i deposit 10000/- I will get back 20000/-, so whats the use of interest rate?
Basavaraj Tonagatti
Dear Sahana,
Money doubles but WHEN is the point you have to consider. As and when there is a change in the interest rate of KVP, there is a fluctuation in the way money doubles also.
soumitra ghosh and supriya ghosh
how a customer verified that a KVP passbook is original or fake by online service
Basavaraj Tonagatti
Dear Soumitra,
If you are downloading it online, then what more verification is required?
Rahul
Sir I purchased nsc and I get passbook sir at the time of maturity I have to submit my passbook then they give me my passbook? Or not
Basavaraj Tonagatti
Dear Rahul,
Yes, you have to submit the passbook.
Vilas Dixit
What is tax implications on NSC
IS IT DEDUCTED AR SOURCE
IF NOT HOW A TAX PLAYER HAS TO ACCOUNT FOR IT.
WHAT IF HOLDER IS NOT A TAX PAYER SUCH AS HOUSE WIFE
Basavaraj Tonagatti
Vilas-There is no TDS on NSC. However, the interest what you earn is taxable income for you.
Sourav Choudhury
Sir i have invested in kvp from a nearby sub post office recently. They gave me post office passbook and all details are written in it(by hand). So i am in a doubt about its originality.
Can i check the details online?or can i get the details verified from gpo?
Basavaraj Tonagatti
Sourav-Whether such handwritten was authenticated by Post Master seal and signature?
Sourav Choudhury
Yes sir.authenticated by that sub postmaster siganture and seal.
Basavaraj Tonagatti
Sourav-Then no issues.
Sourav Choudhury
Ok sir.thank you.one more question, after how many days from the issuing date i can transfer this kvp to another post office? And if i opt to e mode,can i see the kvp details online?
Basavaraj Tonagatti
Sourav-You can transfer at any time. There is no such restriction.
chan
Checked with ICICI and SBI. They don’t seem to provide support for investing in NSC online. So, is visiting the post office only option to invest in NSC still?
Basavaraj Tonagatti
Chan-NSC is the product of Post Office but not banks. Hence, you have to go to Post Office.
Mahesh
Please let me know if i open savings account now in post office. Is still gives the information of past 3 years since i am holding NSC from past 3 years.
Basavaraj Tonagatti
Mahesh-As of now this facility is only for new NSC and KVP.
Virender
We’ve invested in KCPs. & NSCs. now I’ve a concern with unstable GOI policies about safety of my investment I have to be prepared to take away my money to a USA & live safe life there as there is uncertainity in India that frauds made by Mallya, Nirav Modi,LAMO etc. can get incured by hard earn money from public funds. As in banana republics countries frauds are made by rich people & are incured from the public funds. Said by O’Henry he gave this world a great term Banana republics means those countries where farming is principle occupation of people & scams are done by rich & are paid by public funds of poor public. Please tell me is it safe to withdraw money from PO.
Basavaraj Tonagatti
Dear Virender,
God bless you and your thoughts.
Sudha.K
Hi
I have an NSC physical certificate bought from Post office, but I don’t have a savings account in Post office what can I do now?
Basavaraj Tonagatti
Sudha-You have to open the account to avail this facility.
Ash
Hi Basu,
Can we buy KVP and NSC online yet or not?
Thanks
Basavaraj Tonagatti
Ash-It is holding of your certificate in net banking and passbook mode. But buying is still OFFLINE process.
Manjunath Shivanand
Very good information.. thank you Basu
Basavaraj Tonagatti
Manjunath-Pleasure 🙂
Manjunath Shivanand
Dear Basu,
Please help in understanding Convertible and Non-convertible Debentures..
Basavaraj Tonagatti
Manjunath-I wrote a post on this long back. Please refer “Shriram Transport Finance Company NCD July 2012-Review“.
Manjunath Shivanand
Thank you 🙂
VRSHENOI
Thank you for this information. I was searching for such a scheme.
Vrshenoi
Jwalant Desai
Thank you very much for keeping updated us with latest changes…
Keep contributing to our knowledge….
Basavaraj Tonagatti
Jwalant-Pleasure 🙂
Kalappa
Good information Basu
Basavaraj Tonagatti
Pleasure Sir 🙂