How to transfer National Savings Certificates?

Many invest in National Savings Certificates or NSCs. The VIII issue of NSC has a maturity period of five years. Interest accrues annually but is payable on maturity. The certificate can be transferred only once during its tenure.

Conditions
A certificate can be transferred only after a year from the date of issue. This condition is not valid if the transfer is made to a near relative, legal heir of a deceased holder, on orders of the court or to surviving holders on death of a joint holder. To transfer the certificate, the transferee must be eligible to buy the certificate.


Form
The applicant needs to fill up Form NC 34 to transfer savings certificates from one person to another, except as a pledgee.

Information
Details such as name of the transferer, name of transferee, details of the certificates— serial numbers, denomination and date of issue—should be mentioned. The form needs to be signed by the holder (guardian in case of a minor).

Fee
A fee as applicable may be charged for the transfer process by the post office.

Declaration and KYC
The transferee must provide a signed declaration in the prescribed format to abide by the rules pertaining to issue of NSC. The transferee also needs to furnish KYC documents such as photograph, address and identification proof and submit the KYC form.

Process
The old certificate is not discharged. Name of the old holder is rounded and name of the new holder is written on the old certificate. It is then signed by the authorised postmaster. The postmaster’s stamp and date stamp of the post office is also affixed.

Point to note

• Separate application is required for each series of certificate.
• Transfer can be done only for the whole amount of the certificate and not partially.

(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)