CDNS receives Rs971 billion fresh deposits in FY21

ISLAMABAD: The Central Directorate of National Savings (CDNS) has received a fresh deposit of Rs971 billion during the last fiscal year 2020-21, against its set collection target of Rs250 billion for the period, a senior official of the CDNS told APP on Friday.

The CDNS sets an annual collection target to enhance savings and promote saving culture in the country. The CDNS had set Rs352 billion annual collection target for the year 2019-20 as compared to Rs350 billion for the previous year, 2018-19, he said.

The directorate received an increased investment of Rs70 billion by June 30 of this fiscal for new registered Premium Prize Bonds of Rs40,000 and Rs25,000. However, in FY2021, investors withdrew Rs881 billion after the suspension of the said bond.

The official said that the new registered Premium Prize Bonds of Rs40,000 and Rs25,000 were registered by the State Bank of Pakistan (SBP) and en-cashed only by the registered financial institution under the SBP.

Replying to a question, he said, “We paid the encashment of Rs155 billion by June 30th to the investors against the suspension of Rs25,000 prize bonds.” The federal government had recently suspended the prize bonds of Rs25,000 and given a six-month deadline to investors to en-cash their total savings of Rs160 billion. Of this, the senior official said National Savings has paid Rs148 billion to its customers in the last six months, while the remaining Rs5 billion would be paid by October 30, 2021. The government has already cancelled prize bonds of Rs40,000, against which the CDNS repaid a total of Rs258 billion in the previous fiscal year 2019-20, he added.

CDNS has opened new avenues for public and private investment to document the country’s economy and ensure transparency in the financial system.

Replying to another question on the current revision of CDNS certificate profit rates, he said the CDNS has maintained the same interest rate on the savings certificates investment due to the market situation and as per Pakistan Investment Bonds (PIB) policy decision. He informed that the CDNS interest rates were linked with the policy of PIB, set by the SBP.