‘National Savings deposits rises to over Rs1 trillion’

ISLAMABAD—The total deposits of National Savings have risen to over rupees one trillion against Rs. 2.8 trillion collective deposits of all the commercial banks in Pakistan.
“The National Savings Schemes (NSS) are presently holding the major share in the domestic savings and for providing a truly competitive environment, the government has now allowed institutions to invest in all National Savings Schemes except those which are meant for special segments with immediate effect”, Director General NSS, Awais Ahmed Pirzada told newsmen in an exclusive interview here today.
However, he said with the advent of technological revolution in the financial market, the financial institutions are offering better consumer friendly products every day. Pirzada said that the NSS rates which remained a major factor in the deposit collection in the past are now narrowly linked with market. Therefore, he said innovative measures are required for deposit mobilization.
“The wider distribution network is also being geared up to do business in a more effective and professional way and a number of measures have been taken to achieve this objective”, he added.
In the light of changed environment, he also highlighted the following measures for promotion of National Savings.
Pirzada said that for providing a truly competitive environment, the government has now allowed institutions to invest in all National Savings Schemes except those which are meant for special segments of the society with immediate effect.
He said that the non-profit bodies, Registered Charities, Public Sector Enterprises excluding Banks, Private Educational and Health Institution, Employees Old Age Benefit Institutions (EOBIs), Private Corporate Sector excluding Banks and Non-Bank Financial Institutions (NBFIs) excluding Insurance Companies, are entitled to invest.
To facilitate the investors and avoid long queues, the Central Directorate of National Savings (CDNS) has decided to extend the facility for automatic transfer of monthly profit into the Savings Account of the holder at the same centers, he added.
This way, DG National Savings said, the client would not have to wait in long queues to get his profit first calculated and then encashed. Planning is underway that in future, the client will be facilitated to draw profit as per his own will and demand.
Therefore, he said, they will be encouraged to save from within the profit as they would be entitled for additional profit at the Savings Account’s rate. To meet the traveling demands of the depositors, he said, the CDNS has decided to introduce the facility of encashment all over Pakistan at the designated National Savings Centers.
The facility will be provided at the important stations keeping in view the demand of the public, he remarked. To meet the day to day needs of the investors, he said, the limit of two withdrawals within a week’s time have been increased to three times a week.
He said there was a mandatory lock-up period of one month in case of Defence Savings Certificates and Special Savings Certificates, which have now been removed to meet the emergent need of the investors.
Pirzada further said that measures are also being taken to facilitate the investment from abroad and several proposals in this behalf are being considered, which will be finalized shortly.—Agencies