National Savings Certificate (NSC) and Kisan Vikas Patra will now be issued in electronic mode with government deciding to discontinue the system of pre-printed paper certificates.
“It was decided that the currently existing system of physical pre-printed certificates for KVP and NSC shall stand discontinued w.e.f April 1, 2016 and shall be replaced by National Savings Certificate/ Kisan Vikas Patra certificate on electronic – mode (e-mode),” the Finance Ministry said in an office memorandum.
However, till the Core Banking System transits to that e-mode, banks and post offices may choose to issue a physical certificate recorded on a passbook, it added.
NSC and KVP are popular small saving schemes.
NSC scheme is specially designed for government employees, businessmen and other salaried classes who are Income Tax assesses. Investment up to Rs 1 lakh per annum qualifies for tax rebate under section 80C of Income Tax Act.
Amount invested in Kisan Vikas Patra doubles in 110 months (9 years and 2 months). It is available in denominations of Rs 1,000, 5000, 10,000 and Rs 50,000.