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Sale of saving certificates from banks allowed

ISLAMABAD (March 03 2006): The government has restored the agency function of commercial banks allowing the sale of Defence Savings Certificates and Special Savings Certificates (Regd) with immediate effect, says a notification.

According to the notification of the Central Directorate of National Savings, the government has already been providing facility of investment in government securities through National Savings' outlets and selective post offices.

With this decision, a big network of scheduled banks will start offering similar facilities to the general public, which will be helpful for investment in National Savings schemes.

The government is taking care of segments of society who deserve special attention, the notification stated.

The notification added that the “Pensioners' Benefit Account” for the benefit of pensioners and “Bahbood Savings Certificate” for widows/senior citizens were found helpful to reduce economic burden of pensioners and widows/senior citizens simultaneously, providing them an opportunity to keep their money in safe custody.

The government is committed to providing social safety net to these segments of society and to accommodate them it had recently reduced the service charges on Pensioners' Benefit Account and Bahbood Savings Certificates scheme from 2 percent, 1.5 percent, 1 percent and 0.5 percent to 1 percent, 0.75 percent, 0.5 percent and 0.25 percent on the principal amount if encashed or withdrawn before completion of one year, two years, three years and four years from the date of deposit respectively.

Similarly, for the larger interest of general investors, the service charges on Regular Income Certificates have also been reduced from 3 percent, 2 percent, 1 percent and 0.5 percent to 2 percent, 1.5 percent, 1 percent and 0.5 percent, if encashed before completion of one, two, three and four years respectively.

Moreover, the government has also allowed the charities/non-profit organisations to invest in Defence Savings Certificate, Special Savings Certificates (Registered)/Account, regular income certificates and savings accounts up to the maximum limit of Rs10-million only.

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