Tax SavingTaxation

National Saving Monthly Income Scheme New Update 2022

National Saving Monthly Income Scheme New Update 2022

National Saving Monthly Income Scheme, also known as NSMIS, is an Indian government backed program designed to give a monthly income to below poverty line families. It is a part of the Mahatma Gandhi National Rural Employment Guarantee Act, or MNREGA, which provides 100 days of guaranteed work to those in rural India. The idea behind NSMIS is to provide a family with the choice of a better quality of life so that they can have a better standard of living.

The earlier National Saving Monthly Income Scheme was also known as the Post Office Monthly Income Accounts. The new name, along with some modifications for A.Y. 2018.19 will be “National Saving Monthly Income Scheme”. This National Saving Monthly Income Deposit scheme anticipates creating monthly savings for those who are willing to invest in a five-year term plan. The maximum amount that can be invested by one person is INR 4,50 thousand and for joint accounts there is a limit of INR 9,00 1,000. Only one investment in a bank account with a maximum of 100 rupees. 100

National Savings monthly income scheme are released every 12 months. The scheme is designed to fund your monthly saving plan. With a National saving monthly income scheme, you can start saving today and build up your savings with the help of National savings monthly income scheme.

Benefits Of Opening PPF Account in State Bank of India

Who Can Open National Saving Monthly Income Scheme?

The National Saving Monthly Income Account can be opened by the following persons.

(i) a single adult
(ii) Joint Account (up to 3 adults) (Joint A or Joint B))
(iii) a guardian on behalf of a minor/ person of unsound mind
(iv) a minor above 10 years in his own name.

You can open more than one account in the National Saving Monthly Income scheme provided that the total amount of deposits you make do not surpass (Rs.4,50,000) in a single account, or (Rs.9,00,000) on the shared account. It is only possible to make a single deposit per account that has a an amount greater than. 100.

In order to determine the maximum of the maximum percentage of the depositor’s share in a joint bank account should be determined to be the equivalent to one-half (where the account is held by two joint owners) as well as the equivalent of one third (when the account is populated by three joint holders).

If deposits are made in excess of the amount specified, the subscriber must be requested to take the money and return it. The excess deposit is subject to interest rates equivalent to an amount comparable that of the Post Office Saving Bank rate beginning on the date that the payment was received to the date of the withdrawal.

Where to Apply?

You can open National Saving Monthly Income Account at any authorised post office or all public sector banks and ICICI Bank, Axis Bank and HDFC bank authorised for this purpose.

Aadhar Number

You must provide your Aadhar number or proof of enrolment for Aadhaar at the time of application of National Saving Monthly Income. If you are already an account holder even then you must furnish your Aadhaar Number. [Note] Notification No. GSR 1243 (E) dt. 29-09-2017 r/w Lr. F. No. 01/03/2015-NS, Dt.1-1-2018 [/Note]


The facility of nomination is available to open National Saving Monthly Scheme. A person who wishes to invest in this scheme has the option to place the name of a nominee at the time of availing of the scheme or during any time within the operation of the account.


The money in the National Saving Monthly Scheme will expire after five years. Note: Notice NO.1/11/2011-NS-II Dt. 25-11-2011 w.e.f. deposits made after 1-12-2011 [noteNote. However, the maturity period is six years for deposits made until the 30th of November, 2011.

However, if the depositor desires to sell the investment any point during the 5 years, he may accomplish the same thing through having his deposit reduced. The procedure comes with a modest deduction fee that the depositor is assessed. When the deposit is reduced, the depositor can take out his funds from the scheme.


Permitted after one year, at 2% discount. Withdrawals after 3 years are permitted at a discount of 1%.

Interest Rate of National Saving Monthly Income

Interest is paid every month in cash or cheque or deposited in the Post Office Saving Bank Account, at the option of the depositor. Interest shall be rounded off to the nearest multiple of Rs.1.

Interest Rate (Annually) Deposit Period
6.6%On deposits made on or after 1-4-2020
7.6%On deposits made from 1-7-2019 to 31-03-2020
7.701-10-2018 to 30-06-2019
7.301-01-2018 to 30-09-2018
7.501-07-2017 to 31-12-2017
7.601-04-2017 to 30-06-2017

In case of an account in a post office/bank working on the CBS platform, monthly interest shall be credited in the savings account of the depositor in any such post office or any bank, if so authorised by the depositor.

Post Maturity Period

Where a deposit on maturity (including bonus) has become due but not paid, it shall carry interest from the date of maturity up to the date of repayment at the prevailing POSB A/C rate.

Bonus on Closure

In respect of deposits made on or after 8-12-2007 but before 1-12-2011, a bonus of @5% shall be payable on maturity on the production of the passbook accompanied by a written application. No bonus shall be paid on deposits made on or after 1-12-2011.

Tax Benefits of National Saving Monthly Income

No TDS is required on interest or the amount is withdrawn.

More Information Official Website and Rules

We hope you enjoyed our article about National Saving Monthly Income Scheme New Update 2022. We want to make sure that everyone has access to important news about their future and we hope this article provides insight into any future changes that may occur to the National Saving Monthly Income Scheme. Please contact us anytime for any further questions or comments below. Thank you for reading, we would love to hear from you!

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Hello, I am C.K. Gupta owner of, a seasoned finance professional with a Master of Commerce degree and over 20 years of experience in accounting and finance. My extensive career has been dedicated to mastering the intricacies of financial management, tax consultancy, and strategic planning. Throughout my professional journey, I have honed my skills in financial analysis, tax planning, and compliance, ensuring that all practices adhere to the latest financial regulations. My expertise also extends to auditing, where I focus on maintaining accuracy and integrity in financial reporting. I am passionate about using my knowledge to provide insightful and reliable financial advice, helping businesses optimize their financial strategies and achieve their economic goals. At, I aim to share valuable insights that assist our readers in navigating the complex world of taxes and finance with ease.

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