Now Reading: NRIs cannot buy new NSCs, can hold existing ones till maturity
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NRIs cannot buy new NSCs, can hold existing ones till maturity
Non-Resident Indians (NRIs) cannot open new National Savings Certificate (NSC) accounts or purchase fresh certificates, Livemint reports. However, if someone invested in NSC while a resident and later became an NRI, they…
The Story in Brief
Non-Resident Indians (NRIs) cannot open new National Savings Certificate (NSC) accounts or purchase fresh certificates, Livemint reports. However, if someone invested in NSC while a resident and later became an NRI, they may continue to hold the certificate until maturity.
The NSC currently offers 7.7% interest per annum for the July-September 2026 quarter. Investments start at Rs 1,000 with no upper limit. For resident investors, NSC qualifies for Section 80C tax deductions under the old tax regime. Premature encashment is allowed only in specific cases such as the account holder's death or a court order. No extension facility exists after maturity.
The Indian Opinion
Some financial influencers frame this NSC rule as a tax trap for returning NRIs, but the government's rationale is straightforward: NSC is a subsidised small-saving scheme meant for residents. The real test will come if the 2026 Budget aligns small-saving rates with market yields, that will reveal whether the 7.7% return is truly attractive or just a captive-resident benefit.
Source: livemint.com
This story was synthesised by AI from the source linked above.
