The Central Directorate of National Savings (CDNS) attracted Rs 104 billion for investment through various saving schemes during first seven months (July-January) of the current fiscal year against the target of Rs 186 billion set for 2011-12.
Zafar Sheikh, Director General of CDNS, addressing a press conference on the launch of prize bond of Rs 25,000 on Friday, said the total investment fetched by NSS by launching the prize bonds was Rs 294 billion till date and the CDNS is estimating to make Rs 4-5 billion from the Rs 25,000 prize bond.
"We have so far collected investment worth Rs 104 billion from various saving products during the first 7 months of the current fiscal year against Rs 186 billion target set for 2011-12," the Director General said. According to Zafar Sheikh, "CDNS reviews the interest rates after every three months. For example, NSS has recently conducted the review of the interest rates on January 1 and the next review will take place in April, July and October respectively."
He said the NSS would certainly achieve the 100 percent gross investment target set for the fiscal year 2011-12, while the net investment target would not be achieved due to heavy outflows of investment from the NSS as per directive of the Ministry of Finance.
The Economic Co-ordination Committee (ECC) of the Cabinet, in its meeting on April 11, presided over by the Finance Minister had decided to discontinue institutional investment in NSS from March 31, 2011. He said the purpose of the new prize bond of Rs 25000 is to plug the gap between Rs 15000 and Rs 40,000 prize bond. The launch of new prize bond will heighten the cost of effective borrowing, besides making the schemes of prize bond in various denominations more attractive and diversified.
The Director General added that the first prize worth Rs 50 million will be offered on Rs 25000 prize bond. Three prizes worth Rs 15 million will be the second prize, while 1696 prizes worth Rs 0.312 million would be the third prize on the prize bond. First lucky draw on the new prize bond of Rs 25000 would be conducted on May 2, 2012, second on August 1, 2012 and the third lucky draw would be held on November 1, 2012. The prize bonds being launched by NSS range from Rs 200 to Rs 40,000. On prize bond of Rs 200, there would be three prizes worth Rs 750,000 (1 prize), Rs 250,000 (5 prizes) and Rs 1250 (2394 prizes), respectively.
On prize bond of Rs 750, there would be three prizes worth Rs 1.5 million (1 prize), Rs 0.5 million (3 prizes) and Rs 9300 (1696 prizes), respectively. On the prize bond of Rs 1500, first prize of Rs 3 million, three prizes of Rs 1 million each and 18500 prizes worth Rs 93000 each would be awarded.
On the prize bond of Rs 7500, first prize of Rs 15 million, three prizes of Rs 0.5 million and 1696 prizes worth Rs 93000 would be awarded. The prize bond of Rs 40,000 would award Rs 75 million as first prize, three prizes of Rs 25 million and 1696 prizes of Rs 0.5 million. He added that CDNS has automated 109 saving centres in different regions throughout the country.