The Central Directorate of National Savings Organization has introduced Sarwa Islamic Savings Account (SISA) and Sarwa Islamic Term Account (SITA), two Shariah-compliant schemes.
In order to provide different Shariah compliant investment accounts under Sarwa Islamic Savings Account Rules 2019, the Central Directorate of National Savings has established an Islamic window with name of “Rafa National Savings (RNS).”
This scheme will be operational from all national savings centers as these rules have already been approved by the federal government.
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Moreover, Shariah Supervisory Board comprising renowned Shariah scholars has been appointed by the central directorate of national savings. The Board will ensure Shariah compliance of the schemes and operations.
There will be no tenure in case of SISA, while SITA will offer four different tenures of one year, three years, five years, and ten years. In the beginning, SITA-3 years and SITA-5 years will be offered.
According to the notification issued by the Ministry of Finance, the expected rate of profit payable on the deposits made in the Sarwa Islamic Savings Account (SISA) will be 13.50 percent, and profits payable on the deposits made in the five-year Sarwa Islamic Term Account (SITA) will be 12.60 percent, and 13.28 percent on three-year SITA.
The SISA account 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payment and profit payment thereof, till such time it is linked to the SITA account or investment is encashed or withdrawn by the registered holder.
On the other hand, The Sarwa Islamic Savings Account (SISA) is the Shariah-compliant alternative of the regular savings account of CDNS, and the minimum investment amount of SISA is Rs. 100, and profit is calculated on the daily closing balance of the account, paid on monthly basis.
The minimum investment amount under the Sarwa Islamic Term Account (SITA) will be Rs50,000, and profit would be paid as per anticipated profit rates based on investment amounts and paid at maturity for one year SITA, half-yearly for three years SITA, monthly for five years SITA, monthly or yearly for ten years.
Generally, citizens avoid channeling their savings through formal systems due to several complexities and formalities involved. Such practices take the cash out of circulation from the economy. Introducing these two Shariah compliant schemes may help to bring informal savings, whether higher or lower, into the formal system in accordance with the Shariah.