National Savings gears up for two Shariah compliant schemes next month

ISLAMABAD: The National Savings is likely to launch in next month two Shariah-compliant schemes to be known as “Sarwa Islamic Savings Account (SISA) and Sarwa Islamic Term Account (SITA).” Both the Shariah-compliant schemes will be operational in all the National Saving centres across the country.

According to details, the Central Directorate of National Savings has established an Islamic window with name of “Rafa National Savings (RNS)” to provide different Shariah compliant investment accounts under “Sarwa Islamic Savings Account Rules, 2019. These rules have already been approved by the federal cabinet, and operation of this scheme will be allowed from all national savings centres.

To ensure Shariah compliance of the schemes and operations, a Shariah Supervisory Board comprising renowned Shariah scholars has been appointed by the central directorate of national savings.

While the Sarwa Islamic Savings Account will have no tenure, the Sarwa Islamic Term Account will comprise of four different tenures of one year, three years, five years and ten years. Initially, SITA-3 years and SITA-5 years will be offered.

A notification issued by the ministry of finance says the expected rate of profit payable on the deposits made in Sarwa Islamic Savings Account (SISA) will be 13.50 per cent, profits payable on the deposits made in five-year Sarwa Islamic Term Account (SITA) will be 12.60 per cent, and 13.28 per cent on three-year SITA.

As per a senior official of CDNS the SISA account will be opened for unlimited period and will remain valid for principal payment and profit payment thereof, till such time it is linked to SITA account or investment is encashed or withdrawn by the registered holder.

The Sarwa Islamic Savings Account (SISA) is the Shariah-compliant alternative of the regular savings account of CDNS, and minimum investment amount of SISA is Rs100 and profit is calculated on daily closing balance of the account, paid on monthly basis.

The minimum investment amount under the Sarwa Islamic Term Account (SITA) will be Rs50,000, and profit would be paid as per anticipated profit rates based on investment amounts and paid at maturity for one year SITA, half-yearly for three years SITA, monthly for five years SITA, monthly or yearly for ten years.

Ghulam Abbas
The writer is a member of the staff at the Islamabad Bureau. He can be reached at [email protected]

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