Central Directorate of the National Savings Organization has launched two Shariah-compliant programs, The Sarwa Islamic Savings Account (SISA) and Sarwa Islamic Term Account (SITA). As per details, the CDNS has established an Islamic window with the name of “Rafa National Savings (RNS)” to provide different Shariah-compliant investment accounts under Sarwa Islamic Savings Account Rules, 2019.
Further Information on the Newly Launched Shariah-compliant Programs
As per details, the Sarwa Islamic Savings Account will have no tenure, while the Sarwa Islamic Term Account will comprise four different tenures of one, three, five, and ten years. Initially, SITA-3 years and SITA-5 years will be offered. According to the ministry of finance, earnings on deposits made in the three-year Sarwa Islamic Term Account (SITA) would be paid at a rate of 13.28 percent, while profits on deposits made in the five-year Sarwa Islamic Term Account (SITA) will be paid at a rate of 12.60 percent.
The Sarwa Islamic Savings Account has an Rs. 100 minimum investment requirement. While the profit is determined based on the account’s daily closing balance and is paid out on a monthly basis. Whereas, the Sarwa Islamic Term Account will have a minimum investment requirement of Rs. 50,000, and profits will be paid according to predicted profit rates based on investment amounts and paid at maturity for SITAs of one year, three years, five years, and 10 years.
Read more: Miftah Ismail, Islamic Scholars Discuss Implementation of Shariah in Banking System
Shariah Supervisory Board
In order to ensure Shariah compliance with the schemes and operations, the National Savings Organization has appointed a Shariah Supervisory Board of renowned Shariah scholars. Moreover, the Islamic savings account rules have already been approved by the federal cabinet, and the operation of this scheme will be allowed from all national savings centers.