The Central Directorate of National Savings (CDNS) has decided to start Islamic finance and will start implementing its procedural work next month to provide the facility of Islamic finance in the institution.
Under Islamic Sharia compliance, the CDNS will issue Prize Bonds and Saving Certificates for investment in accordance with Sharia principles, a senior official of CDNS informed ProPakistan on Tuesday.
The CDNS will provide Islamic investment opportunities to its consumers in an institution like the rest of the private and public sector banking, where Islamic Sharia business has now reached 20 percent. The official said the CDNS collected Rs. 850 billion in fresh deposits in the last seven months of the current fiscal year.
The CDNS had set an annual gross receipt target of Rs. 980 billion from July 1 to June 30 of the previous fiscal year 2020-21 to promote savings in the country, he added.
The official said the CDNS had set Rs. 250 billion annual collection target from July 1 to June 30 for the year 2020-21 as compared to Rs. 352 billion during the same time span in the year 2019-20 to enhance savings in the country. The annual collection target of Rs. 350 billion had been for the previous year (2018-19).
The senior official said that CDNS has started working to increase new investment opportunities and promote digital investment through new projects.
He added that the CDNS in collaboration with the State Bank of Pakistan is developing digital Prize Bonds, which will be available through online electronic channels.
According to the official, the CDNS is in process of launching its first Mobile App for online purchase and encashment of National Savings Schemes. For efficient transfer of funds electronically, the CDNS is going to adopt RAAST for a speedy flow of funds through its financial tributaries. Initially, the CDNS has opened three separate accounts in the State Bank of Pakistan (SBP) to avoid/stop direct access to the Non-Food Account-1 for its Alternative Delivery Channel (ADC) operations, 1Link Payment, UPI Payment, and RAAST payment.
The Finance Division will allocate budgetary ceiling daily and the CDNS will operate within the allocated funds limit. Accordingly, the Public Finance Management (PFM) Act, 2019 is adopted in its true spirit for the Alternative Delivery Channels of CDNS.
He informed that the CDNS interest rates were linked with the Pakistan Investment Bond (PIB) policy set by the SBP. He said the CDNS had opened new avenues for public and private investment to document the country’s economy and ensure transparency in the financial system.
To a question on the current revision of CDNS certificates’ profit rates, he said the CDNS had maintained the same interest rate on the savings certificates investment due to the market situation and as per PIB policy decision.
The National Savings had received an increased investment of Rs. 80 billion by June 30, 2021, from the newly registered Premium Prize Bond of Rs. 40,000 and Rs. 25,000 by the institution, he said, adding that during the last year (2020-21), investors withdrew Rs. 300 billion after the suspension of the said bond. He said new registered Premium Prize Bonds of Rs. 40,000 and Rs. 25,000 were registered by SBP and were encashed only by registered financial institutions.
How much profit you are giving monthly on five millions deposit in national saving account.