ISLAMABAD: The Central Directorate of National Savings (CDNS) will launch two Sharia-compliant schemes – the Sarwa Islamic Savings Account (SISA) and the Sarwa Islamic Term Account (SITA) – starting next month.
CDNS has set up an Islamic window named Rafa National Savings (RNS) whose role is to provide different sharia compliant investment accounts under the Sarwa Islamic Savings Account Rules 2019. These rules have already been approved by the Federal Cabinet, and the operation of this scheme will be authorized from all National Savings Banks.
In order to ensure Shariah compliance of schemes and operations, a Supervisory Board comprised of renowned academics has been appointed by CDNS.
While SISA will not have a term, SITA will include four different terms – one, three, five and 10 years. Initially, three- and five-year SITAs will be offered.
A notification released by the Ministry of Finance on Friday said the expected profit rate on deposits made in SISA would be 13.50pc, and returns on SITA deposits would be 12.60pc and 13.28pc for terms of five and three years, respectively. .
A senior CDNS official explained that the SISA will be open for an unlimited period and will remain valid for the payment of principal and the payment of profits from it, until it is linked to SITA or the investment either cashed or withdrawn by the registered holder.
Posted in Dawn, August 7, 2022