CDNS reaches net target of Rs 430 billion free deposit

ISLAMABAD: The Central Directorate of National Savings (CDNS) has reached the free deposit of Rs 430 billion in last six months from July 01 to December 31st current Fiscal Year (FY) 2020-21.

The Central Directorate of National Savings (SDNS) has compensated an amount of Rs 440 billion to its investors after the termination of major prize bonds of Rs 40,000 and recent cancellation of prize bonds of Rs 25000, senior official of CDNS told APP here on Monday.

Replying to a question, he said that the federal government has recently suspended the prize bonds of Rs25,000 and has given a six-month deadline to investors to en-cash their savings of Rs184 billion..

The government has already cancelled prize bonds of Rs 40,000 and CDNS repaid to the investors the encashment worth Rs 158 billion in previous FY 2019-20, he said.

The Senior official achieved a collective net target of Rs 42 billion in the last six months by July 1st to December 31 of current fiscal year 2020-21.

The CDNS has set Rs 249 billion annual collection target for the year 2020-21 as compared to Rs 352 billion for the previous year’s 2019-20 to enhance savings and promote saving culture in the country.

The CDNS has set Rs 352 billion annual collection target for the year 2019-20 as compared to Rs 350 billion for the previous year’s 2018-19, he said.

The directorate has also revised and increased the gross target of Rs1570 billion for the fiscal year 2019-20, he said.

Replying to a question on current revision of CDNS certificate profit rates applicable from October 14, 2020, he said CDNS has remained the same the interest rate on the savings certificates investment due to the market situation and Pakistan Investment Bonds (PIB) policy decision.

He informed that the CDNS interest rates are linked with the policy of PIB, set by State Bank of Pakistan (SBP).

He said the rate of profit on Defense Saving, regular income saving, special saving and short-term certificates had remained the same.

The senior official said that the profit rate on special saving certificates has remained the same at 7.77 percent.

He informed that on Defense Saving Certificates, the rate is also the same at 8.49 percent.

The profit rate on regular income saving certificates remained the same at 8.04 percent and on Pension and Shuhada Welfare certificates the rate of profit has been retained.

The rate of profit on Short Term certificates also has been the same.

The three-month certificates now carry a profit rate of 6.66 percent, on six-month certificates rates same at 6.80 percent and on nine-month certificates the rate retained the same at 6.8 from 6.2.

Replying to a question, he said CDNS did not accept institutional investment, but only individual investment was encouraged to deposit for saving in the National Savings.