The Central Directorate of National Savings (CDNS) and Central Depository Company of Pakistan Limited (CDC) signed a Memorandum of Understanding for mutually collaborating to convert and issue National Savings Certificates (NSCs) in digital form to reduce the physical process flows of different transactions and develop a systematic framework through which NSCs can be inducted into the Central Depository System (CDS).
While addressing the occasion, DG CDNS, Hamid Raza commented that the initiative is in line with CDNS’s ultimate objective of the digitization of National Savings Certificates.
“The recent circumstances with the shift to digitization make it all the more exigent for CDNS to undergo complete digital transformation,” said Raza.
“This platform will facilitate investors of National Savings Certificates, making it easier for them to invest in and maintain their NSCs in electronic format, thereby promoting and harvesting the savings culture in Pakistan at the grass root level.”
He said the pivotal role of innovation in economic development is undeniable, with advancements in fintech leading the change.
Innovative tech-based processes can lead to higher productivity, reduced turnaround times, lower costs and wider outreach.
At the occasion, describing the objectives of the project, CEO-CDC Badiuddin Akber said that the core objective of establishing a Depository in Pakistan was to dematerialise all types of financial instruments in Pakistan.
Through this project, CDC will facilitate investors, with investment in a diverse array of securities, to maintain their complete portfolio of dematerialised securities in a single account at CDC.
This project will eliminate the risk of theft, loss, mutilation, etc. as well as the hassle of printing, dispatching, maintenance, etc. of physical certificates by maintaining the NSCs in electronic format in the CDS.
CDC will extend the same benefits to CDNS investors as it currently provides to investors of book-entry securities in the CDS, including easy, efficient and secure transfer process for certificates, online account access and pledging facilities.
At present, a CDC Account can be opened through its offices or through digital portal from anywhere in Pakistan; however, both organisations will also work on the possibility of opening of accounts through the nationwide network of CDNS offices.