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  • National Savings: Rules notified for identification of customers, beneficial owners

    National Savings: Rules notified for identification of customers, beneficial owners

    ISLAMABAD: National Savings (AML and CFT) Supervisory Board for National Savings Schemes has issued SRO 956(I)/2020 for identification and verification of customers, beneficial owners of saving schemes.

    According to the SRO regulations shall be called the National Savings (AML and CFT) Regulations, 2020.

    The chapter III of the regulations explained the identification and verification of customers and beneficial owners.

    Identification and verification.- (1) Central Directorate of National Savings (CDNS) shall –

    (a) conduct CDD in the circumstances and matters set out in subsection

    (1) of section 7A of AML Act; and

    (b) for the purposes of conducting CDD as required under sub-section

    (2) of section 7A of the AML Act in the circumstances set out under sub-section (1) of the said section 7A comply with sub-regulations (2) to (18) of regulation 4.

    (2) CDNS shall –

    (a) identify the customer; and

    (b) verify the identity of that customer using reliable and independent documents, data or information as set out in sub-regulation (9) of regulation 4.

    (3) Where the customer is represented by an authorized agent or representative, CDNS shall –

    (a) identify every person who acts on behalf of the customer;

    (b) verify the identity of such person by using reliable and independent documents, data or information as set out in sub-regulation (9) of regulation 4; and

    (c) verify the authority of the person who is acting on behalf of the customer.

    (4) CDNS shall also identify the beneficial owner and take reasonable measures to verify the identity of the beneficial owner by using reliable and independent documents, data or sources of information as set out in regulation (9) of regulation 4, such that CDNS is satisfied that it knows who the beneficial owner is.

    (5) For customers that are legal persons or legal arrangements, CDNS shall understand the nature of such customer’s business and its ownership and control structure.

    (6) For customers that are legal persons or legal arrangements, CDNS shall identify the customer and verify its identity by obtaining the following information, in addition to the information required in sub-regulation (9) of regulation 4, namely:

    (a) name, legal status and proof of existence;

    (b) the powers that regulate and bind the legal person or arrangement, as well as the names of the relevant persons having a senior management position in the legal person or arrangement; and

    (c) the address of the registered office and, if different, a principal place of business.

    (7) For customers that are legal persons, CDNS shall identify and take reasonable measures to verify the identity of beneficial owners by –

    (a) identifying the natural person, if any, who ultimately has a direct or indirect controlling ownership interest, as defined under relevant laws, in a legal person; and

    (b) to the extent that there is doubt under clause (a), as to whether the person with the controlling ownership interest is the beneficial owner or where no natural person exerts control through ownership interests, the identity of the natural person, if any, exercising control of the legal person or arrangement through other means; and

    (c) where no natural person is identified under clause (a) or clause (b), the identity of the relevant natural persons who hold the position of senior managing official.

    (8) For customers that are legal arrangements, CDNS shall identify and take reasonable measures to verify the identity of beneficial owners as follows, namely:-

    (a) for trusts, the identity of the settlor, the trustee, the protector, if any, the beneficiaries or class of beneficiaries, and any other natural persons exercising ultimate effective control over the trust, including through a chain of control or ownership;

    (b) for waqfs and other types of legal arrangements, the identity of persons in equivalent or similar positions as specified in clause (a); and

    (c) where any of the persons specified in clause (a) or (b) is a legal person or arrangement, the identity of the beneficial owner of that legal person or arrangement shall be identified.

    (9) For the purposes of verification of identity of customers or beneficial owners in sub-regulations (2) to (8), reliable and independent document, data or sources of information includes –

    (a) For a natural person, a copy of:

    (i) Computerized National Identity Card (CNIC) issued by NADRA; or

    (ii) National Identity Card for Overseas Pakistanis (NICOP) or passport for non-residents or overseas Pakistanis or those who have dual nationality; or

    (iii) Pakistan Origin Card (POC) or passport for Pakistanis who have given up Pakistan nationality; or

    (iv) Form B or Juvenile card to children under 18 years of age; or

    (v) where the natural person is a foreign national, either an Alien Registration Card (ARC) or a passport having valid visa on it or any other proof of legal stay along with passport.

    (b) for a legal person, a certified copy of –

    (i) resolution of board of directors for opening of account specifying the persons authorized to open and operate the account (not applicable for single member company);

    (ii) memorandum of association;

    (iii) articles of association, wherever applicable;

    (iv) certificate of incorporation;

    (v) Securities and Exchange Commission of Pakistan (SECP) registered declaration for commencement of business as required under the Companies Act, 2017 (XIX of 2017), as applicable;

    (vi) list of directors required to be filed under the Companies Act, 2017 (XIX of 2017), as applicable;

    (vii) identity documents as per clause (a) of all the directors, beneficial owners and persons authorized to open and operate the account.

    (viii) any other documents as deemed necessary including its annual accounts and financial statements or disclosures in any form which may help to ascertain the detail of its activities, sources and usage of funds in order to assess the risk profile of the prospective customer.

    (c) for a legal arrangement, certified copies of –

    (i) the instrument creating the legal arrangement;

    (ii) registration documents and certificates;

    (iii) the legal arrangement’s by-laws, rules and regulations;

    (iv) documentation authorizing any persons to open and operate the account;

    (v) identity document as per clause (a) of sub-regulation (9) of the authorized persons, beneficial owners and of the members of governing body, board of trustees or executive committee, if it is ultimate governing body, of the legal arrangement; and

    (vi) any other documents as deemed necessary including its annual accounts and financial statements or disclosures in any form which may help to ascertain the subject of the trust, the detail of its activities, sources and usage of funds in order to assess the risk profile of the prospective customer.

    (d) In respect of government institutions and entities not covered above, –

    (i) CNICs of the authorized persons; and

    (ii) letter of authorization from the concerned authority.

    (10) CDNS shall verify the identity of the customer and beneficial owner before or during the course of establishing a business relationship or conducting occasional transactions.

    (11) CDNS may complete verification of the identity of the customer and the beneficial owner after the establishment of the business relationship, provided that –

    (a) this occurs as soon as reasonably practicable;

    (b) this is essential not to interrupt the normal conduct of business; and

    (c) the risks are proven to be low.

    (12) CDNS shall have and implement risk management procedures concerning the conditions under which a customer may utilize the business relationship prior to verification.

    (13) CDNS shall conduct ongoing due diligence on the business relationship, including –

    (a) scrutinizing transactions undertaken throughout the course of the relationship to ensure that the transactions being conducted are consistent with CDNS’s knowledge of the customer, their business and risk profile, including where necessary, the source of funds; and

    (b) undertaking reviews of existing records and ensuring that documents, data or information collected for the CDD purposes are kept up-to-date and relevant, particularly for higher risk categories of customers.

    (14) CDNS shall apply CDD requirements to existing customers on the basis of materiality and risk, and shall conduct ongoing due diligence on such existing relationships at appropriate times, taking into account whether and when CDD measures have previously been undertaken and the adequacy of the data and documents previously obtained.

    (15) CDNS shall apply the countermeasures sanctioned by the Federal Government, pursuant to recommendations by the National Executive Committee, when called upon to do so by the FATF.

    (16) CDNS shall apply EDD in the following circumstances, including but not limited to –

    (a) business relationships and transactions with natural persons or legal persons and legal arrangements when the ML and TF risks are higher;

    (b) business relationships and transactions with natural persons or legal persons and legal arrangements from countries for which this is called for by the FATF; and

    (c) PEPs and their close associates and family members.

    (17) EDD measures may include, but shall not be limited to, the following measures, namely:-

    (a) obtaining additional information on the customer (e.g. volume of assets, information available through public databases, internet, etc.), and updating more regularly the identification data of customer and beneficial owner;

    (b) obtaining additional information on the intended nature of the business relationship;

    (c) obtaining information on the source of funds or source of wealth of the customer;

    (d) obtaining information on the reasons for intended or performed transactions.

    (e) obtaining the approval of Senior Management to commence or continue the business relationship; and

    (f) conducting enhanced monitoring of the business relationship by increasing the number and timing of controls applied and selecting patterns of transactions that need further examination.

    (18) In relation to clause (c) of sub-regulation (16), CDNS shall –

    (a) implement appropriate risk management systems to determine if a customer or beneficial owner is a PEP or a close associate or family member of a PEP, both prior to establishing a business relationship or conducting a transaction, and on an on-going basis throughout the course of the business relationship;

    (b) at a minimum, apply the following EDD measures –

    (i) obtain approval from senior management to establish or continue a business relationship where the customer or a beneficial owner is a PEP, close associate or family member of a PEP or subsequently becomes a PEP, close associate and family member of a PEP;

    (ii) take reasonable measures to establish the source of wealth and the source of funds of customers and beneficial owners identified as a PEP, close associate or family member of a PEP; and

    (iii) conduct enhanced ongoing monitoring of business relations with the customer or beneficial owner identified as a PEP, close associate and family member of a PEP.

    (19) CDNS may allow the application of SDD only where lower risks have been identified through an adequate analysis through its own risk assessment and any other risk assessments publicly available or provided by Supervisory Board in accordance with subregulation (3) of regulation 3 and commensurate with the lower risk factors.

    (20) SDD measures may include but shall not be limited to –

    (a) verifying the identity of the customer and the beneficial owner after the establishment of the business relationship;

    (b) reducing the degree of on-going monitoring and scrutinizing transactions; and

    (c) not collecting specific information or carrying out specific measures to understand the purpose and intended nature of the business relationship but inferring the purpose and nature from the type of transactions or business relationship established.

  • National Savings raises profit rates

    National Savings raises profit rates

    ISLAMABAD: The Central Directorate of National Savings (CDNS) on Thursday raised profit rates of saving schemes.

    A statement issued by the CDNS stated that all the profit rates of bearer certificates had been increased.

    However, profit rates of registered saving certificates have been reduced.

    As per the decision of the CDNS the profit rates have been increased as: Behbood Saving Certificates, Pensioner Benefit Accounts and Shuhda Family Welfare Account from 9.84 percent to 9.96 percent; Defence Saving Certificates from 8.05 percent to 8.11 percent; Regular Income Certificates from 7.44 percent to 7.608 percent.

    The CDNS reduced the average profit rate of special saving certificates (registered)/accounts to 7.05 percent from 7.15 percent.

    Similarly, short term savings certificates for 3-, 6- and 12-month have been reduced to 6.80 percent, 6.76 percent and 6.66 percent from 7.72 percent, 7.36 percent and 7.30 percent respectively.

  • Interest rates on saving certificates slashed up to 100 basis points

    Interest rates on saving certificates slashed up to 100 basis points

    ISLAMABAD: The profit rate on saving certificates have been reduced up to 100 basis points due to sharp cut in key policy rate by the State Bank of Pakistan (SBP). The new rate of return on national saving certificates are applicable from June 02, 2020.

    According to Central Directorate of National Savings (CDNS), the interest rate by one percent on the savings certificates investment due to lower rates of Pakistan Investment Bonds (PIB) applicable from June 02, 2020.

    “The CDNS interest rates are linked with the policy of Pakistan Investment Bonds (PIBs), set the SBP,” an official of CDNS told state-run media.

    The rate of return on ‘Behbood Savings Certificates’ (BSC) reduced from 10.32 to 9.84 percent and as similarly Pensioner Benefit Accounts (PBA) recorded downwards from 10.32 to 9.84 percent.

    The profit rates on ‘Shuhada Family Welfare Account’ also reduced from 10.32 to new rates of 9.84 percent applicable from June 02 of this year.

    The profit rates on ‘Defense Savings Certificates’ (DSC) was also reduced from 8.54 to 8.05 percent and interest rates on ‘Regular Income Certificates’ also downwards 8.28 to 7.44 percent according to the current market situation.

    The profit rates on Special Savings Certificates (Registered)/Accounts was also reduced on all three categories of certificates from 1-5 Profit 8.00 to 7.10 percent, 6th Profit 8.60 percent 7.40 percent and Average 8.10 to 7.15 percent by June 02, 2020.

    The Short Term Savings Certificates profit rates also reduced on different categories on months on month bases by 3- Months from 7.80 to 7.72 , on 6- Months certificates 7.50 to 7.36 percent and on 12-Months slightly increased from 6.95 to 7.30 percent.

    The profit rates on Savings Account (SA) has also been reduced from 7.00 to 6.50 percent decided by last meeting held in Ministry of Finance.

  • Rules drafted for issuance of saving securities for NRI Pakistanis

    Rules drafted for issuance of saving securities for NRI Pakistanis

    ISLAMABAD: The Finance Division has drafted rules for issuance of scripless saving scheme for Non-Resident Individuals (NRIs) Pakistanis, which will be available in three different tenure securities.

    The rules shall be called the ‘Overseas Pakistani Saving Bills Rules, 2020.’ The non-resident Pakistanis having national identity cards for overseas Pakistanis, foreigners having Pakistan origin card, members of overseas Pakistanis foundation or an employee or official of the federal government or a provincial government posted abroad are eligible to open foreign currency account and NRAR as per existing regulations shall purchase the bill.

    The finance division said that the bill shall be issued in scripless form or any other form or format as approved by the finance division in consultation with the State Bank of Pakistan (SBP).

    It further said that the bill would be issued in conventional form and also in Shariah compliant form as per Shariah structure.

    The bill shall be issued for three, six or twelve months or any other tenor. Further, the bill shall be issued in both Pak Rupee and US Dollar or any other currency.

    The minimum denomination of the bill and maximum investment limit shall be as announced by the finance division.

    It said that the bill shall be issued through selected commercial banks that would be selected by the Central Directorate of National Savings (CDNS) in consultation with the SBP. CDNS shall issue or allocate inventory of scripless bill to agent bank for issuance to their foreign currency (FCY) or NRAR account holders.

    The agent bank shall keep the bill inventory so received by CDNS in the CDNS securities account to be opened with them and shall make arrangements to update CDNS about the usage of the inventory and its reconciliation with CDNS.

    The agent banks shall also open investment portfolio securities (IPS) accounts of the account holders purchasing the bill and credit the bill in the IPS accounts.

    The funds for investment in bills must be remitted from abroad as per prevailing regulations and processes. Provided that funds remitted in the non-resident foreign currency accounts and NRAR accounts of the investor after April 15, 2020 may be used for investment in the bills. Provided further that the residents’ foreign currency accounts shall not be used for investment in the bill.

    Explaining rate of return, the finance division said that it would notify the rate of return on the bill and frequency of payment from time to time. Undrawn profit shall not be eligible for compounding. Profit payment shall be made directly only to the account of the investor.

  • Investment in registered prize bonds witnesses 213% growth

    Investment in registered prize bonds witnesses 213% growth

    KARACHI: The investment in registered prize bonds of Rs40,000 denomination have registered phenomenal increase of 213 percent following discontinuation of bearer instruments of same denominations, official data revealed.

    The investment in premium prize bonds surged to Rs18.37 billion by end of January 2020 as compared with Rs5.86 billion in the same month of the last year.

    The sharp growth in investment into premium prize bonds has been attributed to discontinuation of bearer bonds of same denomination.

    In order to document the economy the government launched premium prize bonds in April 2017. The premium prize bonds are being issued only against CNIC with valid bank accounts.

    Further to make the instrument attractive the government also announced bi-annual profit, which transferred directly to the bond holders.

    The participation of investors into registered bonds increased sharply after the announcement of the government on June 24, 2019 to discontinue the bearer bonds of Rs40,000.

    The bearer bonds of Rs40,000 will be completely discontinued for legal tender by March 2020.

    A massive withdrawal of investment has been seen in the bearer instrument as the total investment which was at Rs258 billion in May 2019 reduced to Rs9.57 billion by January 2020.

    The State Bank of Pakistan (SBP) through a circular said that the bearer instrument can be exchanged in savings schemes such as Special Saving Certificates (SSC) or Defence Saving Certificates (DSC). The third mode of exchange the bearer bonds was direct transfer to bank accounts.

    The investment in registered bonds was also increased after the government initiatives to document all instruments of National Saving Schemes as per conditions of Finance Action Task Force (FATF).

    In this regard the ministry of finance notified National Savings Schemes (AML and CFT) Rules, 2019.

    Under these rules the Central Directorate of National Saving (CDNS) through third party will conduct Know Your Customer (KYC) and Customers Due Diligence (CDD) of all existing and new investors.

    The CDNS will ask all the investors about their annual investment and source of earnings under KYC and CDD in order to ensure clean money invested in the schemes.

  • Investors of saving schemes to explain source of income

    Investors of saving schemes to explain source of income

    ISLAMABAD: Investors of National Saving Schemes (NSS) will explain source of income for their existing investments under ongoing drive of the government to check money laundering and terror financing.

    The ministry of finance last week issued draft National Savings Schemes (AML and CFT) Rules, 2019 to document the investment and identify links of investments to Money Laundering and Terror Financing.

    Under the rules the Central Directorate of National Savings (CDNS) will conduct customers due diligence (CDD) of all existing and new investors of NSS.

    The customers will require to provide source of earnings for the investment and their annual income.

    Currently CSNS has 4 million customers and the total investment has increased to around Rs4 trillion by October 2019.

    According to the draft rules: Every customer, whether permanent or occasional and whether natural or legal person or legal arrangement, shall be identified for establishing business relationship and for the purpose following information shall be obtained, verified using reliable, independent source documents, data or information and recorded namely: –

    (a) full name as per identity or registration documents;

    (b) national identity card, passport, national identity card for overseas pakistanis, Pakistan origin card or alien registration card number, etc.

    (c) registration or incorporation number of business, if applicable;

    (d) residential address, telephone numbers and e-mail, if available;

    (e) business address, telephone numbers and e-mail, if available;

    (f) date of birth;

    (g) date and place of registration or incorporation of business, if applicable;

    (h) nationality

    (i) place of birth;

    (j) national tax number (NTN), if applicable;

    (k) nature of business and location, if applicable;

    (l) sources of earnings;

    (m) customer’s net worth in respect of legal persons, legal arrangements and high risk customers; and

    (n) annual income.

  • Profit rates on saving schemes reduced

    Profit rates on saving schemes reduced

    KARACHI: The government has reduced the profit rates on saving certificates effect from November 01, 2019.

    According to notifications issued by Central Directorate of National Savings (CDNS) on Tuesday, the profit rate on Defence Saving Certificate reduced by 2.33 percent to 10.68 percent.

    The profit rate on Pension Behbood has been slashed by 2.28 percent to 12.48 percent.

    The profit rate on Regular Income Certificate has been cut by 2.04 percent to 10.92 percent.

    Similarly, the profit rate on Special Saving Certificate has been cut by 1.70 percent to 11 percent.

    The profit rate on saving accounts has been slashed by 2.05 percent to 8.20 percent.

    Khurram Schehzad, CEO, Alpha Beta Core said that the reduction in profit rate had been done in line with declining secondary market yields on bonds.

    “Decline in fixed income profit rates is going to be positive for equities/stock market,” he added.

  • Investment into premium prize bonds post 46pc growth

    Investment into premium prize bonds post 46pc growth

    KARACHI: The investment in premium prize bonds of Rs40,000 denomination has increased by over 46 percent as the government stopped the circulation of bearer bonds of same denomination and launched campaign to document the economy.

    According to statistics released by State Bank of Pakistan (SBP) the total investment into premium prize bonds of Rs40,000 denomination increased to Rs7.665 billion by end of June 2019 as compared with Rs5.245 billion in same month of the last year.

    The premium prize bonds were launched by the government in March 2019 with the aim to bring undocumented money into the mainstream economy.

    According to salient features of the premium bonds issued by Central Directorate of National Savings (CDNS):

    — The bond is available in Rs40,000 denomination

    — Registered in the name of investor.

    — Quarterly prize money draws as well as bi-annual profit payment.

    — For individuals, public and private sector institutions except banks, insurance companies and mutual funds.

    — Direct credit and prize money and profit in investors bank account.

    — No Application Forms required for claiming prize money & profit.

    — Unlimited Investment and Tenure.

    — WHT applicable and Exempt from Zakat.

    — Transferable and Pledge-able.

    — Can be purchased through Cash, Cheque, Pay-Order and Bank Draft

    — Can be purchased from offices of State Bank of Pakistan Banking Services Corporations.

    The growth in premium prize bonds investment is much faster in the month of June 2019 as compared with the previous month due to the government announcement to stop the circulation of bearer bonds of Rs40,000 denomination.

    The investment in Rs40,000 prize bonds denomination grew by 24 percent to Rs7.665 billion in June 2019 as compared with Rs6.17 billion in May 2019.

    The government on June 24, 2019 notified withdrawal of Rs40,000 denomination national prize bonds from circulation.

    On the same date the State Bank of Pakistan (SBP) issued instructions to chief executives and banks of all banks for compliance.

    The SBP instructed:

    (a) National Prize Bonds of Rs40,000 denomination shall not be sold after June 24, 2019 and will not be encashed/redeemed after March 31, 2020.

    (b) No further draws of Rs40,000 denomination national prize bonds shall be held.

    (c) Cash payment for encashment of bonds is ‘Not’ allowed. However, the bond holder(s) shall have the following options to replace/encash the bonds:

    1. Conversion of Premium Prize Bonds (Registered)

    2. Replacement with Special Saving Certificate (SSC)/Defence Savings Certificate (DSC)

    3. Encashment at Face Value.

    The SBP also issued Standard Operating Procedure (SOP) for conversion to premium prize bonds (registered).

    i. The bonds can be converted to premium prize bonds (registered) through the 16 field offices of SBP Banking Services Corporation, and authorized branches of six commercial banks i.e. National Bank of Pakistan, Habib Bank Limited, United Bank Limited, MCB Bank Limited, Allied Bank Limited and Bank Alfalah Limited.

    ii. The bond holder shall be required to submit a written request for conversion of bearer bonds to premium prize bonds (registered) to be registered in his/her name on the prescribed application form.

    iii. The bond holder shall also be required to submit prescribed application form for registration/purchase of premium prize bonds as per the procedure in vogue.

    The SBP also issued procedure for replacement with Special Saving Certificate (SSC)/Defence Savings Certificate (DSC).

    i. The bonds can be replaced with SSC/DSC through the 16 field offices of SBP Banking Services Corporation, authorized commercial banks and National Saving Centers.

    ii. All authorized commercial banks shall therefore, accept requests for replacement of bearer bonds with SSC or DSC on the prescribed application form.

    iii. The bond holder shall also be required to submit application form for purchase of SSC/DSC as per the prescribed procedure.

    The SBP issued procedure for encashment at face value and said that the bonds will only be encashed by transferring the proceeds to the bond holder’s bank account through the 16 field offices of SBP banking services corporation as well as the authorized commercial bank branches.

    The SBP further said that all commercial banks shall receive request for encashment of bearer bonds on the prescribed application form.

    The SBP said that the prize bonds encashed/replaced by general public may be surrendered to concerned SBP BSC office through respective regional office of the commercial bank. For the purpose, the regional office may intimate the SBP BSC office three days in advance so that necessary arrangements for receipt of the bonds can be made.

    Related Posts

    Investment in saving certificates rises by 19 percent to Rs2,217 billion

  • National Savings to issue registered prize bonds in all denominations

    National Savings to issue registered prize bonds in all denominations

    ISLAMABAD: The Central Directorate of National Savings (CDNS) to issue scripless registered prize bonds amongst all denominations with objective to document the economy.

    Economic Survey 2018/2019 released by the finance ministry of Monday, said that in collaboration with SBP, National Savings is in the process of introduction of registered scripless prize bonds amongst all denominations.

    The registered prize bonds will be a step towards documentation of the economy while providing facility to the general public.

    The CDNS remained in the process of restructuring and transformation in the Fiscal Year 2019. In this regard, the achievements made in the first nine months and initiatives in the pipeline are as under:

    IT Transformation:

    Starting from 2002-03, National Savings has gone a long way towards computerization and automation of its processes.

    Out of 375 National Savings Centers (NSCs), 222 have been computerized. In the last one year, some more milestones have been achieved for transformation of the organization into an Information Technology enabled entity.

    i. A data center has been established at National Telecommunication Corporation (NTC) and now 205 NSCs are connected to centralized location through Wide Area Network (WAN) whereas NTC is working for provisioning of connectivity at remaining NSCs.

    ii. CDNS Main Application System has been upgraded into state-of-the-art Business Application Solution and deployed at 35 National Savings Centers while remaining NSCs are in the process of migration to the centralized architecture by using the newly upgraded Business Application Solution. The aforesaid achievement has enabled CDNS for provisioning of advance, efficient and value-added services to its customers using Alternative Deliver Channels (ADCs) i.e. Debit/ATM Cards, etc.

    iii. Protocols have been laid down with National Database Registration Authority (NADRA) for obtaining Verisys and Biosys, which are necessary in the new digitized set up of the organization.

    iv. Vendor has been selected for providing the card (ATM/Debit Card) solution for CDNS.

    v. Agreement with 1Linkhas been signed for providing connectivity with banking sector/ATM operations.

    Achievement of Annual Targets:

    CDNS, being the foremost institution providing the avenue to general public to park their savings has been able to not only achieve the targets assigned but also surpassed by a big margin. As of 30.04.2019, the CDNS has achieved 213 % of the Gross and 191% of proportionate targets.

    Initiatives in the Pipeline:

    Sharia Product of National Savings

    There was a persistent demand of Sharia compliant product and CDNS has responded to it and has developed its first-ever Sharia Compliant product called Sarwa Islamic Savings Account (SISA) for those who desire to invest only in the Sharia-compliant scheme of CDNS. The Draft rules for it have been printed in the Gazette of Pakistan and after approval of the Cabinet Committee for Disposal of Legislative Cases (CCLC) and the Federal Cabinet, the proposed SISA Scheme will be introduced across the country.

    Overseas Pakistanis Savings Certificates (OPSCs)

    The Pakistani diaspora abroad wanted to have a secure investment channel for their savings while Government of Pakistan, in order to increase more also looked for bringing remittances into formal money channels which were mostly coming via informal channels. In this regard, to fill the void, OPSCs has been designed as a product by CDNS to be launched for Overseas Pakistanis only. It will be launched initially in the Gulf Cooperation Council (GCC) market and then other countries. The Agreement with Manger To the Issue (MTI) has been almost finalized. Being a scripless security, OPSCs will be offered in both the US$ and rupee currencies. It is expected that they will be launched in the Fiscal Year 2019-20.

    Launch of Rs. 100,000 Premium Prize Bond (Registered)

    After successful launch of Rs.40000, Premium Prize Bond (Registered) National Savings is in the process of launching another registered prize bond for Rs. 100,000

    Debit Card Launch & Membership of 1Link System

    In near future National Savings is launching ATM Debit Cards with the support of the Karandaaz Pakistan.

  • Senior citizens allowed investment in national savings on expired CNICs

    Senior citizens allowed investment in national savings on expired CNICs

    KARACHI: The Central Directorate of National Savings (CDNS) has issued directives to its zonal offices, instructing them to follow the policy outlined by the central bank to facilitate older citizens aged 65 years and above in making investments using expired Computerized National Identity Cards (CNICs).

    (more…)