LAHORE – The Central Directorate of National Savings (CDNS) offers various investment avenues which are fully compliant to the principles of Sharia.
In line with the public demand, CDNS has launched a dedicated Islamic window, named as Rafa National Savings (RNS) which promotes interest (Riba) free savings and investments opportunities.
Sarwa Islamic Savings Account (SISA) is based on the Shariah structure of Wakala-bil-Istismar which is an Investment Agency or a delegated authority whereby a Muwakkil (principal) appoints the Wakeel (agent) to carry out a specific job on behalf of the Muwakkil.
In case of SISA, the accountholders shall act as principal and request RNS/CDNS to appoint Ministry of Finance (MoF) as its agent in relation to the investment of the Muwakkil’s funds under the respect SISA (as the case may apply) on an unrestricted basis in Government’s projects/ revenue generating assets (the Shariah Approved Project Portfolio).
Pursuant to request, CDNS will request MoF to enter into Shariah based arrangements for managing the investments and generating profit for the accountholders.
Profit and Loss in Sarwa Islamic Savings Account
Accountholders will be entitled to the actual profit under the relevant Wakala-bil-Istismar investment made under the respective SISA and the anticipated profit rates for such investments are calculated and disclosed by RNS/CDNS on the basis of their pro rata investments.
If profit earned is higher than anticipated profit rates, the excess shall be an incentive granted to MoF as the agent. In case of any loss on the investments, the principal being respective SISA or SITA account holder (duly represented by RNS/CDNS) shall bear proportionate risks associated with the acts of the agent under the Wakala.
Premature Withdrawal
The account holder can withdraw the amount at any time.
Profit Rate on Sarwa Islamic Savings Account Nov 2024
The CDNS has recently revised the profit rates on various savings accounts, including SISA, with effect from November 2024.
The profit rate for Sarwa Islamic Savings Account has been fixed at 11.16% as compared to previous 14.25% as inflation has decreased in the country.
