National Savings Certificate (NSC)

The National Savings Certificate (NSC) has a long history in India, dating back to its inception in 1959. It was introduced by the Government of India as a small savings instrument aimed at encouraging individuals to save for the long term. NSCs are issued by the Department of Posts and are available at post offices across the country. They offer a fixed interest rate, compounded annually, and have a maturity period of five or ten years. NSCs are considered a safe investment option as they are backed by the government and offer tax benefits under Section 80C of the Income Tax Act,1961. However, consumers have faced several issues with NSCs over the years. One significant concern is the lack of liquidity, as premature encashment of NSCs is not allowed except in specific circumstances such as the death of the holder. This lack of liquidity can be a disadvantage for individuals needing access to their funds in emergencies. Additionally, NSCs have faced criticism for their relatively low interest rates compared to other investment options available in the market, which can affect the overall returns for investors. These issues highlight the need for continuous evaluation and potential reforms to ensure that NSCs remain an attractive savings option for investors. Those encountering concerns related to NSC’s can use our platform to file consumer complaints. With a commitment to providing exceptional Legal service, our team ensures prompt and effective assistance. We support through multiple online channels, and provide complete legal guidance and litigation support.