This is with reference to the news published in Pakistan Today on 16 August 2018 with a punch line of “Profit rates of different saving certificates revised”.
The publishing of the news is highly appreciated however the same is a bit out of context and not properly informed. To be precise with information and as it should be, hence this clarification.
The profit rates on NSS are reviewed bi-monthly and last been upward revised from 1 July 2018. As per policy, the next revision is due from 1 September, which will be based on the post monetary policy dated 27 July 2018 rate regime. However, even the existing rates on NSS are still competitive and comparative with the profit rates on different products offered by financial institutions. Further, the rates of PBA, BSC and Shuhuda Welfare account are much higher than the comparative market products.
With respect to National Savings performance, some important and critical achievements are missing in the story with regard to savings mobilization and drastic improvement in services delivery to the valued customers. It is worthwhile mentioning that the savings mobilization is not the sole responsibility of National Savings. The National Savings Schemes (“NSS”) targets are divided between, National Savings, Commercial Banks/ State Bank of Pakistan (“SBP”) and Pakistan Post Office Department (“PPOD”), and these annual targets are set and advised to all concerned.
CDNS has achieved all its assigned targets during the years despite low-interest rates regime. The achievement of CDNS alone in terms of net savings mobilization remained 110 per cent, 103 per cent and 178 per cent of the targets during FY 2015-16, 2016- 17, 2017-18, respectively, and helped to increase the overall NSS portfolio to Rs3.6 trillion. However, the negative net flow on the part of Commercial Banks of Rs-4 billion, Rs-12 billion and Rs-13 billion in FY 2015-16, 5016-17 and 2017-18, respectively, actually affected the overall mobilization of NSS. It is also pertinent to mention that the gross receipts during last three years of lowest interest rate regime increased substantially by Rs926 billion, Rs1007 billion and Rs1,368 billion during FY 2015-16, 2016-17 and 2017-18, respectively.
CDNS alone contributed Rs2, 070 billion during these three years. Furthermore, and perhaps most importantly, CDNS leap-frogged in last two years in digitizing the department to divorce its dependence on interest rates and complete digital transformation is only a matter of months – something which had been struggling for the last 15 years, and won first-ever the “Outstanding Contribution to Financial Inclusion Pakistan Award 2017 by CFI.co Magazine” and “Best Financial Inclusion Pakistan Award 2018 by International Finance Magazine”. Besides, following outlined key achievement were totally ignored/missed in the story: Secured the membership of Banking Clearing System (NIFT); the only non-banking member. Intracity cheque clearing improved from 5 days to 1 day and intercity from 15 days to 3 days. Allowed third-party payments from savings account which helped in converting them into operating accounts.
Offering Call Center and Computerized Complaint Resolution System for better customer experience. Successfully launched “Qoumi Bachat Digital” – the mobile App of National Savings. In-house staff mobile App developed and is being rolled out. Website revamped to make it more customer friendly and state-of-the-art Number of automated branches increased from merely 48 in August 2016 to now 223 (68 per cent of the data) with 195 online (previously, non-online). Most efficient deployment of IT infrastructure and expensive equipment by setting-up of Data Center at NTC and connecting it online with CDNS branches.
Organizational structure improved for better control environment and service delivery. Implementation (and institutionalization) of Dormant Account Rules in line with global best practices. Better communication with the employees and team building (newsletter introduced, cricket tournaments, essay-writing competition, whatsapp groups rolled-out, employee town-halls initiated) and with the customers (complaint channels opened on Call Centre, Facebook, WhatsApp, Twitter, etc.). Secured funding grant of 2.5 million from Karandaaz for offering Alternate Delivery Channels “ADCs” including online banking (cellphone and internet) and ATM/ POS Cards. World Bank extended $9.4 million under their Financial Inclusion and Infrastructure Project program for Pakistan for upgrading IT systems and processes, conversion to a double-accounting system, ERP, etc. Final Phase/ Phase 3 of branch automation is pursued with NFIS/ DFID. Expected to secure US $5mn grant from DFID through NFIS. Automation Project Phase 2 has been successfully completed in-time (September 2017). Rolled-out new welfare products for Shuhada Families and Disabled Persons, and first-ever Registered Prize Bond launched after a gap of 7 years. Advanced stages of launching much-needed Shariah Compliant Product and Overseas Pakistanis Savings Certificates which will enable us to at least double our investment potential. Offering of ADCs will also help in increasing the potential for investment manifold.
Sir, on Behbood Certificate, profit on One Lakh rupees was Rs.1400/- per month. Previously to that time profit was Rs.1500/- per month. Presently profit is Rs.850/- per month. What is all this, instead of going up it is decreasing day-by-day. Mostly we are retired employees of PAKISTAN STEEL, Karachi. You please look into this matter, we are facing great Financial Hard-ships in this regard. Hoping to hear soon and a quick action from your side. With Thanks!
The CEO/MD of the NTC is a low life scum whose appointment is totally illegal and totally against the law. The man cannot type, use email, whats app. He is the least competent man for the job
The rate on behbood sertificat have been decreased from Rs 1400 to 850 on rs100000 per month. Behold fund sertifacats are also not acceptable as security. The increase in rate of interest will controls inflation on one hand and on other it will raised savings for further investment . Most of retired personals from banks, Army etc earn livelihood from this investment which are suffering due to low rate on one hand and on the other hand due to inflation. The rate of inflation practically much higher than the the rate of return. It is not a social justice with old person who are no other substitution of earnings. Please increase the rate of return.
100000 per month par kitna profit mil rha hy
Sir, on Behbood Certificate, profit on One Lakh rupees was Rs.1400/- per month. Previously to that time profit was Rs.1500/- per month. Presently profit is Rs.850/- per month. What is all this, instead of going up it is decreasing day-by-day
Now it is Rs.1190…hopfully it will increase more
Yousuf Omar
The amount invested in different schemes of national savings remain reduced in real value by about 30 % due to devaluation of Rupee on one hand and on other hand inflation has increased by low rate of intrest. The most retired persons from banks army earn their livelihood by this small investment and government enjoyed these funds prominently for her needs. Please increase the profit rate particularly on like Behbood fund which are not acceptable as security by financial institution and have no effect on credit expention and this on prices
In past it was Rupees 1400 on one hundred thousand per moth and now is RS 910 only The small investors are suffering due to devaluation and, inflation .
Please accommodate this class and oblige as they cannot do another business in this old age.
The profit of national saving schemes are linked to increase/decrease of monetary policy/rates declared by the State Bank of Pakistan. On 20th May 2019 the State Bank announced an increase of 150 points (1.5%) in the interest rate. National Saving must also announce the corresponding increase in their rates without any delay.
Right from 1st May 2019, the NSC should enhance the profit rate 1.5% in line with the policies of State Bank. It will definitely compensate the widows, Old age citizen have Bahbood and Pension Account. This timely initiative will also increase the deposits with NEC in the prevailing financial crisis facing by Govt.
As salaam mu alaykum
I have just been introduced to this lately.
So this confirms that this is not INTEREST BASED account.
This typer type of account is permissible in Islam
As salaam mu alaykum
I have just been introduced to this lately.
So this confirms that this is not INTEREST BASED account.
This typer type of account is permissible in Islam