If a National Savings Certificate (NSC) is lost, stolen, destroyed, mutilated or defaced, the person entitled there to may apply for the issue of a duplicate certificate to the post office where the certificate is registered or to any other post office in which case the application will be forwarded to the post office of registration.

Every such application shall be accompanied by a statement showing particulars, such as number, amount and date of the certificate and the circumstances attending such loss, theft, destruction, mutilation or defacement.

If the Officer in charge of the post office of registration is satisfied of the loss, theft, destruction, mutilation or defacement of the certificate, he shall issue a duplicate certificate on the applicant furnishing an indemnity bond in the prescribed form with one or more approved sureties or with a bank's guarantee:

Provided that where the face value or the aggregate face value of the certificate or certificates lost, stolen, destroyed, mutilated or defaced is Rs. 500 or less, a duplicate certificate or certificates may be issued on the applicant furnishing an indemnity bond without any such surety or guarantee:

Provided further that where such application is made with respect to a certificate mutilated or defaced, of whatever face value, a duplicate certificate may be issued without any such indemnity bond, surety or guarantee, if the certificate mutilated or defaced is surrendered and the certificate is capable of being identified as the one originally issued.

A duplicate National Savings Certificate (NSC) issued shall be treated as equivalent to the original National Savings Certificate (NSC) for all the purposes of these rules except that it shall not be en-cashable at a post office other than the post office at which such certificate is registered without previous verification.