ISLAMABAD: The Cen­tral Directorate of National Savings (CDNS) will launch two Shariah-compliant schemes — Sarwa Islamic Savings Account (SISA) and Sarwa Islamic Term Account (SITA) — from next month.

The CDNS has established an Islamic window named Rafa National Savings (RNS) whose role is to provide different Shariah-compliant inve­s­tment accounts under Sarwa Islamic Savings Account Rules 2019. These rules have already been approved by the federal cabinet, and the operation of this scheme will be allowed from all national savings centres.

To ensure Shariah compliance of the schemes and operations, a supervisory board comprising renowned scholars has been appointed by the CDNS.

While SISA will have no tenor, SITA will comprise four different tenors — one, three, five and 10 years. Initially, three and five-year SITA will be offered.

A notification issued by the Ministry of Finance on Friday said the expected rate of profit payable on the deposits made in SISA would be 13.50pc, and returns on the SITA deposits will be 12.60pc and 13.28pc for five and three-year tenors, respectively.

A senior official of CDNS explained that the SISA will be opened for an unlimited period and will remain valid for principal payment and profit payment thereof, till such time it is linked to the SITA or investment is encashed or withdrawn by the registered holder.

Published in Dawn, August 7th, 2022