Professional Documents
Culture Documents
National Saving Laws
National Saving Laws
Table Of Contents
Chapter # Topic
1: Executive summary
2: Introduction & History
3: Current status of Organization
4: Organizational Setup
5: Hierarchy chart
6: Objectives & Scope
7: Primary & Ancillary services
8: Primary Services
Defence saving certificates
Special savings certificates
Regular Income Certificates
Savings Account
Special Savings Account
Pensioners Benefit Accounts
Bahbood Savings Certificates
Prize Bonds
Features common to all schemes
9: Ancillary Services (Departments)
Administration OR HRM
Treasury Section
Drawing and Disbursement Section
Publicity Section
Scheme Section
10: Independent Department
Regional Account Office
11: NSC center in Bahawalpur
12: Intermediaries
13: External Analysis
Customer Analysis
Competitive Analysis
Strategic Groups
Market Analysis
Size & Growth
Cost Structure
Environmental Analysis
Economic analysis
Technological
Government
Sociocultural
14: Internal Analysis
Tangible Resources
Intangible Resources
Human Resources
Executive Summary
Mobilization of idle savings is necessary for the economic development of any country.
Pakistan is trying to do so through national savings, as said earlier, and to reinvest them
in the required or desired segment/ sector of economy.. The objective of national savings
was to create motivations towards savings among people of Pakistan . Now it is trying
well for this objective. People are concentrating toward the schemes of national savings.
National savings also, launched many schemes for the attainment of this purpose like
prize bonds, certificates etc.
The other objective of NSO was to provide assistance to SBP in controlling the quantity of
money in the country. Because suppose in inflationary conditions SBP has to launch
securities and it feels difficulties to do soo in the absence of National Savings.
My objective of internship was to work in the practical environment of NSO for six weeks
to learn its functioning and analyze its performance. competitiveness, contribution in
economy & Structure. This report include all these concerned areas of study
4
National Savings Organization
The history of National Savings Organization dates back to the year 1873 when the Government
Savings Bank Act, 1873 was promulgated. During the First World War, the British Government
introduced several Schemes for collection of funds to meet the expenditure. It was in this context
that the Post Office Cash Certificates and, during the Second World War, post Office Defense
Savings Certificated were floated. The need to setup a separate agency was felt and a national
savings Bureau was established in 1943-44 as a attached department of Ministry of Finance of
the undivided Government of India. The department was headed by National Savings
Commissioner with the status of a Joint Secretary. At that time the main functions of Savings
Department were to initiated all policy matters and issue directives for the execution of policy
matters and issue directives for execution of policy decisions of the Central Government, and to
review the Savings Schemes for time to time. Gradually, Savings Organization were established
in almost all the Provinces of the sub-continent with the objectives of popularizing the Savings
Schemes among the masses as well as to supervise, guide and control the working of authorized
agents under their jurisdiction. The local authorities appointed the agents. They were paid
commission @ 2 ½ on the investment secured by them. These authorized agents were in those
days the only agency for securing investment in terms of Saving Certificates from the general
public.
In nutshell the central agency via, National Savings Bureau, Simla, was mainly concerned with
the policy and planning matters of the Saving Schemes whereas the responsibilities of execution
of various savings schemes vested with provincial authorities.
At the time of independence there was no time for any sort of innovations in the field of
administration. Thus an organization with the name of “Pakistan Savings Central Bureau” was
created and the Government of Pakistan entrusted the Savings work to it, but this Bureau had its
own peculiarities. The Pakistan Savings Central Bureau had no independent entity and was not
given the same status as enjoyed bye Savings Bureau, Simla. The head of Pakistan Savings
Central Bureau was then called Central National Savings Officer, a junior Officer of the Ministry of
Finance with the status of as Under Secretary having some auxiliary staff. In 1953, the Pakistan
Savings Control Bureau was re-named as Central Directorate of National Savings and it carried
out the functions on the liens of National Savings Bureau Simla but as a part of parcel of the
Finance Division, Central Directorate of National Savings was only responsible for publicity, and
the operative agents were the provincial Governments as well as Pakistan Post Offices. However,
the entire expenditure in this regard was borne by the Central Government. Such an arrangement
created a large number of administrative difficulties and stunted the growth of savings. In view of
these difficulties the Central Directorate of National Savings was given the status of an Attached
Department in September 1960, and was made responsible for all policy matters and execution
of various National Savings Schemes. Subsequently, it was also declared a Technical Department
by the Government. The Director General, National Savings (BPS-20) now enjoys full powers of a
Head of the Department. Till December, 1971, the National Savings Organization functioned as a
publicity Organization and its activities were merely promotional in nature, but in early 1972, the
5
scope of its activates was enlarged as the Central Directorate started selling II-Rupee Prize
Bonds, and subsequently engaged in the operations of other savings schemes. This resulted in
considerable expansion of the National Savings Organization.
These are 367 National Savings Canters all over Pakistan which are controlled by 12 Regional
Directorate of National Savings (RDNS).
Peshawar Abbottabad
Lahore Bahawalpur
Multan Faisalabad
Quetta Gujranwala
Islamabad Hyderabad
Sukkur Karachi
At present, this organization has a total sanctioned strength of 3365 employees in various grades
and its main units are as under:
Organizational Setup:
6
Hierarchy Chart
Core Objectives
o Generation of pool of funds for country
o Provide secure system of Borrowing
o Promotion of savings
o Mobilization of idle savings
o Motivation towards savings
o Provide assistance to SBP
o Establishment of a savings Banks
Promotion of savings:
The main and basic purpose of national savings was to collect the small amounts of savings from
lower class & middle class of the society of Pakistan. Because the amounts of savings in this
segment of people are very low so they often try to avoid the investment of this amount. National
was to create confidence among these people and collect their small savings through its savings
schemes.
7
Mobilization of idle savings:
Mobilization of idle savings is necessary for the economic development of any country. So
Pakistan is trying to do so through national savings, as said earlier, and to reinvest them in the
required or desired segment/sector of economy.
The other objective was to provide assistance to stat bank of Pakistan in controlling the quantity
of money in the country. Because suppose in inflationary Conditions. SBP has to launch securities
The last objective was to establish the savings bank in the country, which has performed all
saving function. No doubt other commercial banks were doing and trying their best to act as
savings bank but the speed of advancement was not satisfactory and people were not considering
them.
Primary Services
National Savings Schemes
1
Defence Saving Certificates:
The Government of Pakistan introduced Defence Savings Certificate scheme in the year 1966.
This is the most popular scheme among investors. This scheme has Specifically been designed to
meet the future requirements of the depositors. This is the only scheme with 10 years maturity
with built in feature of automatic reinvestment after the maturity i.e. in case any certificate is not
encashed on maturity, the balance at Credit (principal + profit) without any deduction, shall be
deemed to have been reinvested for another period of 10 years on filling in a new application
form.
8
these Certificates are available in the following denominations
S.No. 1. 2. 3. 4. 5. 6. 7. 8.
Rupees 500 1000 5,000 10,000 50,000 100,000 500,000 1,000,000
SALIENT FEATURES:
3. Investment Limit:
There is no maximum limit of investment in this scheme.
4. Encashability:
Certificates can be encashed any time after one month from the date of purchase.
5. Mode of Deposit:
These certificates can be purchased by depositing cash at the issuing offices or by presenting a
cheque. The certificates shall immediately be issued on receipts of cash. However, in case of
deposit through cheque the certificates shall be issued from the date of realization of the cheque
after receipt of the clearance advice.
After
completion of year 1 2 3 4 5 6 7 8 9 10
Rupees 105 112 119 128 138 150 163 183 211 247
Value on
completion
of period
Rs. 500 1000 5000 10,000 50,000 100,000 500,000 1,000,000
1 Year 525 1,050 5,250 10,500 52,500 105,000 525,000 1,050,000
2 Years 560 1,120 5,600 11,200 56,000 112,000 560,000 1,120,000
3 Years 595 1,190 5,950 11,900 59,500 119,000 595,000 1,190,000
4 Years 640 1,280 6,400 12,800 64,000 128,000 640,000 1,280,000
5 Years 690 1,380 6,900 13,800 69,000 138,000 690,000 1,380,000
6 Years 750 1,500 7,500 15,000 75,000 150,000 750,000 1,500,000
7 Years 815 1,630 8,150 16,300 81,500 163,000 815,000 1,630,000
8 Years 915 1,830 9,150 18,300 91,500 183,000 915,000 1,830,000
9 Years 1,055 2,110 10,550 21,100 105,500 211,000 1,055,000 2,110,000
10 Years 1,235 2,470 12,350 24,700 123,500 247,000 1,235,000 2,470,000
Note:
Zakat shall be deducted only once at the time of actual encashment on the value fallen due on
the relevant valuation date i.e. (1st Ramadhan) and not on the continuous reinvestment after the
maturity. A Zakat collection receipt duly signed by the two officers is issued in token of the
deduction of the amount.
Value on
of period Rs 500 1,000 5000 10,000 50,000 100,000 500,000 1,000,000
1 Year 520 1,040 5200 10400 52,000 104,000 520,000 1,040,000
9
2 Years 545 1,090 5450 10900 54,500 109,000 545,000 1,090,000
3 Years 575 1,150 5,750 11,500 57,500 115,000 575,000 1,150,000
4 Years 610 1,220 6,100 12,200 61,000 122,000 610,000 1,220,000
5 Years 650 1,300 6,500 13,000 65,000 130,000 650,000 1,300,000
6 Years 695 1,390 6,950 13,900 69,500 139,000 695,000 1,390,000
7 Years 750 1,500 7,500 15,000 75,000 150,000 750,000 1,500,000
8 Years 830 1,660 8,300 16,600 83,000 166,000 830,000 1,660,000
9 Years 945 1,890 9,450 18,900 94,500 189,000 945,000 1,890,000
10 Years 1,095 2,190 10,950 21,900 109,500 219,000 1,095,000 2,190,000
7. Transfer of Certificates:
Certificates are transferable from one city to another by applying on the prescribed form (SC/6)
obtainable from any NSC/ SBP BSC (BANK)office and also available at the website of National
Savings under the option of "Forms". The application duly filled in along with two copies of NIC
may be presented at the office of issue or at the office where the transfer is desired. However,
the certificates purchased from scheduled banks, State Bank of Pakistan, SBPBSC (Bank), PPO
and NSC can be transferred to and from the respective branches of the issuing office / agencies
only.
(b) From one person to another:
Certificates are transferable from one person to another on the expiry of non/encashability
period, by applying on the prescribed form (SC/4). In case of death of the purchaser, certificates
can be transferred in the name of nominee(s) without any fee/charges or to the legal heir(s) on
furnishing among others, a
succession certificate issued by the competent court of law, along with the following: -
8. Pledging of Certificates:
Certificates can be pledged in favor of a gazetted government officer, Officers of the State Bank
of Pakistan, Officer of a Local Authority, or an Officer of a Government Sponsored Corporation or
an officer of a scheduled bank, in his official capacity, for the purpose of being treated as security.
The value of security shall be the payable value of the certificates including the amount of profit.
11. Sale Of Defence Savings And Special Savings Certificates Abroad Through
Overseas Branches of Scheduled Banks of Pakistan.
All branches of Pakistani Scheduled Banks Operating Abroad are allowed, in principle, to sell
Defence Savings Certificates (DSCs)/Special Savings Certificates (SSCs) to Overseas Pakistanis
against foreign currency on repatriable basis provided regulatory sanction/permission of the
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concerned country is available. The payment of principal and or profit of certificates, so issued is
also payable abroad in local currency from the same branch of the bank. These certificates are
transferable from one person to another and also to Pakistan in any branch of the same bank
from where the certificate purchased.
2. At the time of purchase, the face value of the certificates in Pak. Rupees is converted in local
foreign currency at the prevailing rate for Pak. Rupees so as to generate Pak. Rupee equivalent to
the face value of the certificate required. Similarly, at the time of encashment of profit and
principal, the payable rupees amount is converted into foreign currency at the T.T. spot buying
rate for Pak. Rupees on the date of payment.
3. In case of death of the purchaser, the amount of principal and or profit accrued on these
certificates is payable to nominee(s) or legal heirs, if so desired?
4. Recently, the sales of Defence Savings Certificates and Special Savings Certificates have been
started by the branches of HBL and UBL Operating in UAE after the grant of regulatory permission
by the Central Bank UAE for sale of these securities of Government of Pakistan. The sale of these
certificates would also be started in other countries as and when necessary regulatory permission
is accorded by the Central Bank of the respective
countries.
2
SPECIAL SAVINGS CERTIFICATES
This scheme being of three years maturity was introduced in February, 1990 keeping in view the
periodic needs of depositors. These certificates are available in the denomination of
Rs.500, 1000, 5000, 10000, 50000, 100000, 500000 and Rs.1,000,000/
Profit is paid on the completion of each period of six months.. In case, the profit earned on these
certificates is not drawn on due date, the undrawn profit will automatically stand reinvested from
date of its accrual as per following tables:
After
Completion
Of period Rs. 500 1000 5000 10,000 50,000 100,000 500,000 1,000,000
1st six
Months 21 42 210 420 21,00 4,200 21,000 42,000
2nd six
Months 21 42 210 420 21,00 4,200 21,000 42,000
3rd six
Months 21 42 210 420 21,00 4,200 21,000 42,000
4th six
Months 21 42 210 420 21,00 4,200 21,000 42,000
5th six
Months 21 42 210 420 21,00 4,200 21,000 42,000
6th six
Months 24 48 240 480 24,00 4,800 24,000 48,000
After
Completion
Of period Rs. 500 1000 5000 10,000 50,000 100,000 500,000 1,000,000
1st six
Months 17 34 170 340 1,700 3,400 17,000 34,000
2nd six
Months 17 34 170 340 1,700 3,400 17,000 34,000
3rd six
Months 17 34 170 340 1,700 3,400 17,000 34,000
4th six
11
Months 17 34 170 340 1,700 3,400 17,000 34,000
5th six
Months 17 34 170 340 1,700 3,400 17,000 34,000
6th six
Months 19.25 38.50 192.50 385 1,925 3,850 19,250 38,500
Note:
(i) Zakat is deducted at the time of actual encashment @ 2.5% on the principal amount (Face
Value) where applicable.
(ii) With Holding Tax : As per directions of the Federal Government, the tax on profit from
Investment made on or after , the 1st july,2002, shall be deducted at source at the rate of ten
percent (10%) of such profit if such deposit exceeds Hundred and fifty Thousand Rupees
(150,000).
3
Regular Income Certificates
Keeping in view the monthly requirements of the general public, this five years' maturity scheme
was launched on 2nd February, 1993. These certificates are available in the denomination of
Rs.50,000, Rs.100,000, Rs.500,000, Rs.1,000,000, Rs.5,000,000 & Rs.10,000,000/=. Profit is
paid on monthly basis reckoned from the date of issue of certificates.
These certificates can be purchased by a single adult, a minor or two adults in their joint
names with the options of payable to the holders jointly (Joint-A ) or payable to either (Joint-
B). An adult can also purchase these certificates on behalf of a single minor, two minors jointly
or himself/herself and a minor jointly. In addition to above individual investors, the following
institutions are also allowed to invest in the scheme:
How to Purchase?
These certificates can be purchased from any National Savings Centre (NSCs) or from Pakistan
Post Office (PPO) by filling in a prescribed form called SC-1,
SC-1, which is available at all, the above
offices of issue free of cost. A copy of the National Identity Card or in case of a foreign
national, a copy of the Passport may be attached with the application form (SC-I).
Mode of Deposit.
These certificates can be purchased by depositing cash at the issuing office or by presenting a
Cheque. The certificates shall immediately be issued on receipt of cash. However, in case of
deposit through Cheque the certificates shall be issued from the date of realization of the
Cheque after receipt of the clearance advice.
The minimum investment limit is Rs.50, 000/-, however, there is no maximum limit of
investment in this scheme.
These certificates are encashable any time subject to deduction of service charges at the
following rates:
12
If encashed before completion of one year from the date
@ 2.00% of the face value
of issue.
At the prevailing rates monthly profit of Rs.795/- is paid on investment of each Rs.100,000/-.
This way the profit rate works to 9.54% p.a. However, the facility of automatic reinvestment of
profit to earn further profit is not available in this scheme.
4
Savings Account
This is the oldest scheme among the National Savings instruments. The scheme has been
designed to encourage the small savers and to meet their day to day needs. This is an ordinary
account and frequent withdrawals (twice a week) can be made through this account. .
The account can be opened by a single adult, a minor, two adults in their joint names with the
options of payable to the holders jointly (Joint-A ) or payable to either (Joint-B). An adult can
also invest in these account on behalf of a single minor, two minors jointly or himself/herself
and a minor jointly. In addition to above individual investors, the following institutions are also
allowed to invest in the scheme:
How to Invest?
These accounts can be opened at any National Savings Centre (NSCs) and Pakistan Post Office
(PPO) by filling in a prescribed form called DA-1,
DA-1, which is available at all, the above offices of
issue free of cost. A copy of the National Identity Card or in case of a foreign national, a copy
of the Passport may be attached with the application form
Mode of Deposit.
The accounts can be opened by depositing cash at the issuing office or by presenting a cheque.
The passbook and withdrawal slip shall immediately be issued on receipts of cash. However, in
case of deposit through Cheque the account shall be opened from the date of realization of the
Cheque after receipt of the clearance advice.
The deposits can be withdrawn any time from the date of deposit. However, there is a limit of
two withdrawals within a week's time.
Profit in this account is credited on 30th June every year and is worked out on the lowest
balance of an account between the close of the sixth day and end of the month. The current rate
of profit is 6.50% p.a.
At present the profit earned on the accounts, wherein the average balances within a month do
not exceed the limit of Rs.150, 000/- are exempt from levy of withholding tax. However,
withholding tax @10% is deductible at source on the profits earned on the accounts, wherein
the balances exceed the aforesaid limit. Zakat is also applicable as per rules.
5
Special Savings Account
A three years maturity scheme introduced in February, 1990. The deposits are maintained in form
of an account. Profit is paid on the completion of each period of six months.
The account can be opened by a single adult, a minor, two adults in their joint names with the
options of payable to the holders jointly (Joint-A ) or payable to either (Joint-B). An adult can
also invest in these account on behalf of a single minor, two minors jointly or himself/herself
and a minor jointly. In addition to above individual investors, the following institutions are also
allowed to invest in the scheme:
How to Invest.
These accounts can be opened at any National Savings Centre (NSCs) and Pakistan Post Office
(PPO) by filling in a prescribed form called DA-1,
DA-1, which is available at all, the above offices of
issue free of cost. A copy of the National Identity Card or in case of a foreign national, a copy
of the Passport may be attached with the application form.
Mode of Deposit.
The accounts can be opened by depositing cash at the issuing office or by presenting a cheque.
The passbook and withdrawal slip shall immediately be issued on receipts of cash. However, in
case of deposit through cheque the account shall be opened from the date of realization of the
cheque after receipt of the clearance advice.
The deposits can be withdrawn at par any time after one month from the date of purchase.
However, no profit is payable in case the withdrawals are made before completion of 6 months.
At the prevailing rates the profit is paid @ 9.00% p.a. for 1st five profits and the last profit @
10.50% p.a. However, if the profit is not withdrawn on due date, it will automatically stand
reinvested and would be calculated for further profit on completion of the next 06 months
period.
At present, the profit earned is exempt from withholding tax, if the total investment in the
scheme by the investor(s) does not exceed Rs.150, 000/-. However, withholding tax @ 10%
is deductible at source on the profit(s) earned if the total investment exceeds Rs.150,000/- by
the investor(s). The Zakat is collected at source as per rules at the time of encashment.
However, no Zakat is not collected in case of reinvestment.
5
Pensioner's Benefit Account
Keeping in view the hardships faced by the pensioners and to guard them against the declining
rate of return on National Savings Schemes, this ten years' maturity scheme was launched by the
Government on 19th January, 2003. The deposits are maintained in the form of accounts and the
profit is paid on monthly basis reckoned from the date of opening of the account.
The pensioners of Federal Government, Provincial Governments, Government of Azad Jammu &
Kashmir, Armed Forces, Semi Government and Autonomous bodies are allowed to invest.
How To Purchase?
These accounts can only be opened at the National Savings Centre (NSCs) by filling in a
prescribed form called DA-1,
DA-1, which is available at the offices of issue free of cost. A copy of the
National Identity Card and the copy of Pension Payment Order may be attached with the
application form.
Mode of Deposit.
The account can be opened by depositing cash at the issuing office or by presenting a cheque.
The account shall immediately be opened on receipt of cash. However, in case of deposit through
cheque the account shall be opened with effect from the date of realization of the cheque after
receipt of the clearance advice.
The minimum investment limit is Rs.10, 000/-, whereas, the maximum limit is Rs.3, 000,000/-.
If an investor has already opened an account, he is eligible to invest only two subsequent
deposits in that account.
The deposits can be withdrawn any time after date of deposit subject to deduction of
service charges at the following rates:
15
@ 1.00%
if withdrawn before completion of one year from the date of deposit.
of the face value
if withdrawn after one year but before completion of 02 years from @ 0.75%
the date of deposit. of the face value
if withdrawn after two years but before completion of 03 years from @ 0.50%
the date of deposit. of the face value
if withdrawn after three years but before completion of 04 years from @ 0.25%
the date of deposit. of the face value
At the prevailing rates monthly profit of Rs.970/- is paid on investment of each Rs.100,000/-.
This way the profit rate works to 11.64% p.a. Automatic reinvestment of profit facility to earn
further profit at the scheme's rate is not admissible in this scheme; however, further profit is
paid on undrawn profit at the rate applicable on Savings Account.
The withholding tax is not collected on the profit earned on the deposits made in this scheme.
The investment made in the scheme is also exempt from Zakat.
6
Bahbood Savings Certificates
Keeping in view the hardships faced by the widows and senior citizens and to guard them against
the declining rate of return on National Savings Schemes, this ten years' maturity scheme was
launched by the Government on 1st July, 2003. Initially the scheme was meant for widows only,
however, the Govt. later decided to extended the facility for senior citizens aged 60 years and
above with effect from 1st January, 2004. These certificates are available in the denominations of
Rs.5,000/-, Rs.10,000/-, Rs.50,000/-, Rs.100,000/-, Rs.500,000 and Rs.1,000,000/-. Profit is
paid on monthly basis reckoned from the date of purchase of the certificates.
Only widows and senior citizens aged 60 years and above are eligible to invest.
How to Purchase?
These certificates can only be purchased from the National Savings Centre (NSCs) by filling in a
prescribed form called SC-1,
SC-1, which is available at the offices of issue free of cost. A copy of the
National Identity Card and necessary evidence regarding eligibility is required to be attached
with the application form.
Mode of Deposit.
The certificates can be purchased by depositing cash at the issuing office or by presenting a
cheque. The certificates shall immediately be issued on receipt of cash. However, in case of
deposit through cheque the certificates shall have the effect from the date of realization of the
cheque after receipt of the clearance advice.
The minimum investment limit in this scheme is Rs.5, 000/-, whereas, the maximum limit is
Rs.3, 000,000/-. Investment in allowed in multiple of Rs.1, 000/-.
If encashed before completion of one year from the date of purchase. @ 1.00% of the face value
If encashed after one year but before completion of 02 years from the
@ 0.75% of the face value
date of purchase.
If encashed after two years but before completion of 03 years from the
@ 0.50% of the face value
date of purchase.
At the prevailing rates monthly profit of Rs.970/- is paid on investment of each Rs.100, 000/-.
This way the profit rate works to 11.64% p.a. Automatic reinvestment of profit facility to earn
further profit is not admissible in this scheme at the scheme's rate; however, further profit is
paid on undrawn profit at the rate applicable on Savings Account.
The withholding tax is not collected on the profit earned on these certificates. The investment
made in this scheme is also exempt from Zakat.
Prize Bonds
Introduction
Prize Bonds are bearer type of security available in the denominations of
Rs.200, Rs.750, Rs.1, 500, Rs.7, 500, Rs.15, 000 and Rs.40, 000.
These bonds are issued in series.
Each series consist of one less than 1,000,000bonds.
No fixed return is paid
Prize draws are held on quarterly basis.
These Bonds shall enchased at par any time after their issue
These bonds can b purchased or sale at the following places, namely: -
1. Office of the Stat Bank of Pakistan.
2. Banks authorized in this behalf by the State Bank of Pakistan.
3. National Saving Centers.
1. The Federal Government may withdraw any of the Bonds of circulation time by notification
in the official Gazette.
2. No claim of a prize on the Bonds so withdrawn shall be admissible after the issue of
the notification under sub-rule.
3. These Bonds may be purchased any time on payment in cash and no application form shall be
necessary.
4. The sale of these Bonds shall be opened till such time as the Federal Government withdraws
the Bonds.
5. The Bonds shall not bear interest but lots shall be drawn for each series quarterly for prizes on
Such dates as specified below, namely:-
Draw Schedule
Rs. 200 15th day of March, June, September and December every year.
Rs .750 15th day of January, April, July, and October every year.
Rs .1500 15th day of February, May, August and November every year.
Rs. 7500 1st day of February, May, August and November every year
Rs .15000 1st days of January, April, July and October every year.
Rs .40000 1st days of March, June, September and December every year.
The draws are held under common draw method and the numbers of prizes are same for each
series. It means that if 50 series of Rs.200 Prize Bond are in circulation. Then on each draw we
have 50 winners of 1st prize and 150 winners of 2nd Prize and so on. The number and amount of
prizes on various denomination of prize bonds for each series is shown in the following table:
The above facilities are provided subject to the completion of formalities laid down under these
rules.
9. In case of minor:
The application should be signed by the person who has originally made the investment on
minor’s behalf along with certificate that minor is alive are certificate are being transferred his
/her behalf.
Nomination
In the case of purchase of certificate by individual or individual, whether adult or minor , holding
the certificate singly or jointly, nomination may be made by purchase(s) of certificate in the
application form at the time of the purchase, specifying the amount, whether whole or in part
20
receivable purchaser(s). A holder of a certificate may, at any make a nomination if he has not
done so earlier or, by notice to the issuing Authority, varies or cancels his previous nomination. In
case of more then one nomination they shall be presumed to hold equal shares if the same is not
specified in the application for purchase of certificate(s). In case of more then one nomination,
payment can be made to one of the nominees when the others have not lodged their claims.
Ancillary Services
1
HUMAN RESOURCE MANAGEMENT/ ADMINISTRATION SECTION
Human resource management is the great asset for any organization. This is off balance sheet
precious asset. The personal of any organization are the pillars of the success of that
organization.
The importance of human resource management keeps important place in the financial
institutions like banks and saving centers because these institutions requires great deal of
expertise from its employees.
National savings is the important financial institution under Govt. control. Due to its importance it
requires high class personal. Under this topic. We will discuss the procedure of managing the
Human Resources in National Savings. In details for the discussion of all aspect, we have
classified this topic under following such headings:
1. EMPLOYEES STATUS.
2. EMPLOYEES DISCIPLINE.
3. PENALTIES.
4. EMPLOYEES LEAVES.
5. ALL FIELD EMPLOYEES SCALE.
6. DETAILS OF DIFFERENT CENTERS
7. RECRUITMENT.
8. RETIREMENT.
9. TRAINING.
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10. INCENTIVES FOR MOTIVATION.
Now all the topics will be discussed in brief but in comprehensive way.
1. Employee’s status.
All these are civil servants. Civil servant act 1973, an Act to regulate the appointment of person
do, and the terms and conditions of service of persons in the service of Pakistan. (All central
Govt. employees) apply this act.
2. Employees Discipline.
Conduct rules 1964, civil employees are bound to Govt. conduct rules. When any employ
inefficient rule may be involve corruption.
3. Penalty.
Two type of penalty:
(1) Minor penalty.
Censure mean, just tough warning
With holding, for a specific period, promotion or increments otherwise ban for
unfitness for promotion or financial advancement in accordance with rule or order
training to a service or post.
Stopped, for a specific period, at any efficiency bar in the time scale, otherwise than
for unfitness, to cross such far.
Recovery from pay of the whole or any part of any pecuniary loss cause to Govt. by
negligence or break of orders.
(2) Major penalty.
Reduction to a lower post or time scale, or to a lower stage.
Compulsory retirement
Removal from service. (May be work other Govt. institutions).
Dismissal from service. (Not work any Govt. institute).
4. Employee leaves.
Calendar year 20 casually vacation every holiday can not be claimed as a matter of authority
7. Recruitment.
Recruitment is very important step in the H.R management in the financial institutions like
National saving. It requires a great deal of experience National saving was adopting two methods
for recruitment of employees up to last year.
How Recruitment Proceed.
Gunman.
Direct recruitment no promotion and qualification is primary pass. People who are related to
retire Army, Police, and any security department prefer these persons.
Driver
Direct recruitment but driving license is necessary.
Joint director
100% promotion quota.
8. Retirement
When age of any of person is completed 60 years then this person is retire the job. But if any
person wants a retirement before 60 years. If any person service is completed for 25 years they
voluntarily retire they request the institution and easily get the retirement. During job a person
may be serve ill/accident on the basis of medical ground they easily get the retirement (no age
limit in this situation). If the Government service is completed for 10 years then the person avail
all facilities .but if the Govt. service is not completed for 10 years than the person is not availing
all facilities. We can calculate the pension by this formula.
Pension = last pay down * length of the service *7/300
Length of service =date of joining years – date of retirement years.
Then the answer is the gross profit.
Pension =half the gross pension* 12* commutation factor.
Suppose the gross pension is 9000 than we calculate the net pension
Pension =4500* 12*18.3129
9. Training
Training is the process of refinement of abilities of the employees. National savings uses two
methods of training for its employees so that they can face the challenges of modern techniques.
These methods are:
(1) Initial training
(2) Routine training
(2)Routine training
This type of training is given to employed workers. Who are already working in national saving.
National saving offers two kinds of this training:
Training in Pakistan includes the training through regular courses, refresher courses that are of
short term in nature in the training institute at Islamabad.
The directorate of national savings also arranges training in aboard. It keeps membership of
international savings operation of ISBI in Geneva.
2
TREASURY SECTION
3
DRAWING & DISBURSEMENT SECTION
Communication:
Postage and Telegraph, Telephone and Trunk call, Telex and tele-printer Courier and pilot service.
Utilities:
1: Gas, Water, Electricity, Hot and- Cold water charges, Office Stationery,
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2: Printing, Newspapers, Periodicals and books, Uniform and Liveries, Rent royalties, Rates and
Taxes.
3: This section is also dealing with the pay bills of the employees of the national savings, various
Allowance are calculated by this section for the employees of the national savings as like
House Rent allowance, Conveyance allowance, Dearness allowance, washing allowance,
Overtime allowance, Medical charges and Rest and Recreational allowance. In addition to these
Allowance this section is also deducting various deductions as like Benevolent fund, General
Provident Fund, Postal life insurance, income tax, Trade Tax, House building advance, Motor
Cycle advance, House Rent etc
4: This section is dealing with expenses of the office and employees of this department. Now we
are concerned with the proper way to give sanction for the bill of expenses to the employees
and offices of this department.
All this procedure is done through various sorts of forms as like T.R 30, T.R 16, T.R 31, T.R 22,
T.R 25, T.R 20, and pension papers etc. Through these sorts of form this section is dealing with
the expenses of the national savings.
These forms have various heads of allowance and deductions of pay as like:
T.R 20: This form is used to show the Traveling allowance of the Gazetted Officers.
T.R 22: This is a pay bill for the Non-Gazetted employees; in this from the allowance and
deductions are recorded.
T.R 16: This is a pay boll of the Gazetted Officers, and shows all the allowance and
deductions.
T.R 31: In this form the expenses of the officers are recorded, the expenses are taken
over by the form T.R 30.
4
PUBLICITY AND STOR SECTION
In the publicity of schemes agencies are involved, because national savings are not
After the publicity schemes the paper owner send bill along with tear sheet to concerned
advertising agency.
Electronic Media:
PTV.PTV WORD,
Short listing.
Selection of advertising agency.
Board of selecting agency.
Fixing of date of final selection should call at least 10 agencies, than these campaigns will be
exhibited, then director of each agency will explain its campaign for removing fraud, the title of
the agency will be hidden on campaign.
More than are agency can be selected.
Transfer or sending to press paper.
Minister (issue of appointment letter).
APNS
Budget verification (advertisement, printing charges, local publicity, press & media).
Final approval from competent authority.
Selection of newspaper. (Considering holidays).
Issue of release order will send to press information department.
Instructions, about the size of the add, wording page is also given.
PID (press information department) will give a copy of its approval to NSC and
other.
External publicity wing, we send our requirements, add, page. Size, color, length,
EPW observe and decide that either add should or not be placed in our media.
(EPW) also check that weather we have NOC or not or weather we have bill or approval
for pointing.
5
SCHEME SECTION
The function of this department is to examine and audit the reports of the all stated
schemes.
It compiles the report of each scheme of every branch of the city.
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1: Daily
2: Monthly
3: Annually
Calculate and evaluate the incoming and outgoing cash of every scheme of every
branch of the city.
External Analysis
The External Analysis examines opportunities and threats that exist in the environment. Both
opportunities and threats exist independently of the organization. The way to differentiate
between a strength or weakness from an opportunity or threat is to ask: Would this issue exist if
the company did not exist? If the answer is yes, it should be considered external to the firm.
Opportunities refer to favorable conditions in the environment that could produce rewards for the
organization if acted upon properly. That is, opportunities are situations that exist but must be
acted on if the firm is to benefit from them. Threats refer to conditions or barriers that may
prevent the firms from reaching its objectives.
The following area analyses are used to look at all external factors effecting the organization:
Customer analysis
Segments: There are two major segments of customers
1: Lenders(investors)
2: Borrowers(investors)
National savings is a NON Banking Bank and it don’t facilitate the both categories of the
customers its only concern lie in the Investors. Thus we will focus only on the investors.
1. Senior citizens
2. Retired Employees
3. Widows
4. Other Investors
All above mentioned segments of employees are focused by the NSO as well as by other financial
institutions.
Pensioners are supposed to hold large amount of money as compare to other investors and they
need a constant income for their future life thus all financial institutions try to attract, facilitate
and retain these potential customers.
The senior citizens and widows are also supposed to be back upped by constant and
reasonable amount of income thus they are also focused in the same manner as the pensioners.
All other potential investors who don’t lie in the above discussed categories are the ones who
want to deposit and grow their savings. They don’t need any constant income but, they expect
return on their investments. They constitute a large number of investors. In the future these
customers are supposed to convert in to the other 3 discussed categories.
Competitive analysis
Identification:
The competitors of NSO are all those financial institutions that offer the investment schemes to
the potential and current investors. These competitors include all the Banks in Pakistan. Money
markets (e.g. Stock exchange).
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strategic groups
There are basically three strategic groups that are effecting the potential investments of NSO.
They are
Stock exchanges
Money Changers
Banks
Performance Evaluation
1: Stock Exchanges In stock exchanges the investors lend money to the different corporations
and purchase the shares of the corporations. They earn profit in the form of 1: Dividends 2:
Increased Market value of shares. But risk factor is also involved in this type of investment. As
the market value of shares can be decreased due to certain reasons. And the company may or
may not declare the dividends. Thus investments in this sector are highly risky. In addition to all
these risks investors have to bear the service charges.
2: Money Changers: There is a group of investors who earns through the change in the
currency exchange rates. These investors on their personal judgment predict the increase or
decreased in the currency rates and invest to increase the amount of their investments. This type
of investment is also risky because the situation can be reversed due to certain uncertain
reasons.
3: Banks: These financial institutes offer the fixed return on the investments. The risk factor is
low because the original investments are secure and additional markup is paid on the original
invested amount. As compare to the above two financial strategic groups this group offers
relatively low amount of return. The banks cannot offer the return rates on their own will. The
rates offered by banks are regulated and fixed by the State Bank Of Pakistan.
Market Analysis
NSO is operating only within the country premises; If it broadens its operations overseas it would
earn higher investments. So whole world is its potential market.
Cost Structure
What are the major cost and value-added components for various types of
competitors?
Competitors are regulated by State Bank Of Pakistan. Being a Govt. body it is supported by
highest interest rates. Still a large number of customers believe in the superior value added
services provided by competitors and they pay additional service charges for availing those
services. These additional service charges are earnings of the competitors. One of the most
important fact is that NSO don’t conduct service charges from its customers (e.g.: opening of
new accounts, issuing check books, transfer of accounts) this is all because to invite more
investments. But to provide these services in free NSO looses a large portion of its potential
income. In other words it is the opportunity cost of the operations.
Environmental Analysis
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An environmental analysis is the four dimension of the External Analysis. The interest is in
environmental trends and events that have the potential to affect strategy. This analysis is
divided into five areas: economic, technological, political-legal, sociocultural, and future.
Economic
What economic trends might have an impact on business activity? (Interest rates,
inflation, unemployment levels, energy availability, disposable income, etc)
Analysis: The basic purpose of National Savings Organization is to motivate the Pakistanis
towards savings. The profit rates are affected bcoz of inflation. The interest rates decrease due to
inflation. When employment rate decreased interest rates are lowered to demotivate investments
in banks. Intern investments in other businesses increases which decrease the unemployment.
In recent years the interest rate is increased at a very less extent due to high inflation and
unemployment.
Technological
Analysis:
Electronic Technologies:
The existing technologies used by the NSO include
Fax
Telephone
Computers
Printers
Infrared devices
Among all above stated technologies Computers are currently (since 3 years) adopted. Well
trained employees deal with computers. System is transforming from manual to computers.
Different soft wares are been installed on hit and trial basis for experiment. A serious
consideration is given to convert whole system on computers. Other technologies are well
established and well adopted.
What technological developments or trends are affecting or could affect our industry?
ATM services adopted by competitors add an extraordinary utility for customers of savings
account. NSO lacks this facility and in spite of its highest offered rates it faces turnover of
customers (those customers who value ATM services).
In the same manner Cr cards are also one of those technological facility that is responsible for
turnover of customers.
Government
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What changes in regulation are possible? What will their impact be on our industry?
Rules and regulations could be affected by incoming elections. The unstable political status plays
a vital role in inflation. This would affect interest rates inversely.
Yes definitely. There are 95% chances for elections. No one is sure about upcoming
Governmental body
Sociocultural
What are the current or emerging trends in lifestyle, fashions, and other components of
culture?
Life style is moving dynamically towards high technological adaptation. The one who adopt and
upgrade its operating structure according to it would survive and the one who lack this adoption
would definitely be a looser. demographic trends such as the market size of the population
(growth rate, income, population shifts) are increasing tremendously this is a positive sign for
potential investments and shows a great opportunity for the organization.
NSO must adopt high technology in its operations like ATM, CR cards. It must broaden its
operations and a special training must be given to employees to facilitate, motivate and retain its
customers.
Internal Analysis
Understanding a business in depth is the goal of internal analysis. This analysis is based
resources and capabilities of the organization.
Resources
A good starting point to identify company resources is to look at tangible, intangible and human
resources. Tangible resources are the easiest to identify and evaluate: financial resources and
physical assets are identifies and valued in the firm's financial statements.
Intangible resources are largely invisible, but over time become more important to the firm than
tangible assets because they can be a main source for a competitive advantage. Such intangible
recourses include reputational assets (brands, image, etc.) and technological assets (proprietary
technology and know-how).
Human resources or human capital are the productive services human beings offer the firm in
terms of their skills, knowledge, reasoning, and decision-making abilities.
Tangible Resources
31
Findings:
1: Tangible Resources
Intangible Resources
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Technological Findings:
Simple manual data entry system exists currently. NSO has no technological
edge over its competitors. Although different efforts are been made to
transform the whole system on computer.
Reputation Findings:
1: Product Reputation
NSO is been working since 1873. Its current offered rates are higher than any
other's. It is highly recognized throughout Pakistan. One of its reorganization
is for the PENSIONERS BENEFITS ACCOUNT and BAHBOOD SAVINGS
CERTIFICATES. Not much people know its schemes of RIC, SA, SSC.
A very small number of people know that Prize bonds are NSO's financial
products. They thought it as a product of State Bank Of Pakistan.
2: Customers Reputation
Employees Reputation:
Employees are very much concerned with their duties. They don’t give any
particular attention for customer retention and customer loyalty. They show a
good behavior generally but, don’t bother to maintain an excellent
relationship with their customers.
Human Resource
Findings:
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Education: Senior employees are not highly educated. The senior employees
are under Graduate. The currently employed employees are graduate and
Masters.
National savings uses two methods of training for its employees so that they can face the
challenges of modern techniques. These methods are:
(1) Initial training
(2) Routine training
Capabilities
Resources are not productive on their own. The most productive tasks require that resources
collaborate closely together within teams. The term organizational capabilities is used to refer to
a firm's capacity for undertaking a particular productive activity. Our interest is not in capabilities
per se, but in capabilities relative to other firms. To identify the firm's capabilities we will use the
functional classification approach. A functional classification identifies organizational capabilities
in relation to each of the principal functional areas.
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Findings:
Strategic financial Control:
The financial strategic control is maintained by the State Bank of Pakistan Through FISCAL
POLICY AND Monitoring Policy. The profit rates are proficiently controlled and regulated by State
Bank Of Pakistan.
Financial Management:
Inter Organizational financial management is controlled through Regional Accounts Office . the
claims of pay/allowance, payments of contingencies etc, are being honored/processed by
Regional Accounts Offices attached with each Regional Directorate of National Savings.
regional directorate is controlled and coordinated by its respective zonal Directorate . All zonal
directorates are managed and commanded by Central Directorate.
SOWT ANALYSIS
STRENGTHS
Security of Security of Investments
National Savings organization is the Govt. owned organization that is why the Pakistan
public trusts his organization and its schemes are secured. Due to this the deposits of
the organization are in creasing day by day.
Excellent Intra Organizational Employees relation
The staff members are well equipped with the tool of personal relations
Experienced And Energetic Employees
Majority of the staff is experienced and energetic.
Vast Network of Centers
National Saving organization has the large network of centers.
Schemes for All Income Levels
National saving organization has so many schemes for the lower middle and higher
Level income people of Pakistan.
Highest Profits
National Saving organization has paying more profit for different schemes as compare
to its competitors.
Favorable Working Environment
The working environments of the branches are favorable for the working of staff.
Friendly Attitude
Generally the attitude of the employees is very good with the customers and with each
other.
WEAKNESSES
lack new and modern technology
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The National Saving organization lack new and modern technology.
The transactions in the regional offices as well as the branches are not computerized.
Slow Development
The organization is in high profits but it’s working in the manual form. Well the
organization has admitted the need in this regard and has been developing computer
department for this purpose.
Poor Marketing
There is no specific marketing department to develop general awareness about the
schemes of organization. People invest in the other higher risked and low profitable
schemes of other banks.
If they are provided with proper guidance and awareness about the schemes of this
Organization this organization would earn the highest investments.
Unavailability of Financial Reports
Financial Reports and magazines are not published for public and therefore its financial
analysis is not possible.
OPPORTUNITIES
THREATS
Branch Environment
In case of financial institution the branch environment plays a vital role. National savings center
requires a lot of improvement in this respect. General cleanliness conditions are very bad. So
there is need to take immediate action for the improvement of branch environment.
Implementation of technology
Now a day every organization has the opportunity to implement development in technology. So
That to provide high quality products. It is a computer age. As all other financial institutions are
computerized National savings centers must fill up this flaw.
Employees are most important asset of an organization. They must be provided with proper
training to meet the changing needs of Business. National savings organization does not have
such culture. An advertisement campaign must be run to educate the current and potential
customers about the rates of its products and handling of accounts certificates
There is need of rapid enhancement of NSCs branches especially in foreign countries. National
saving centers do not exist out side the Country. So they are loosing market which will be
effective source of revenue for government of Pakistan.
Promotion of Schemes
National saving centre is working in high competitive environment. So promotion of schemes can
be a very important strategy to take competitive advantage. So a full fledged promotional
program .should be launched to create awareness about the schemes of national savings
organization.
37
REFERENCES:
o www.savings.org.pk
o www.nationalsavings.org.pk
o www.mystrategicplan.com
o Anwer Bhatti ( September 13, 2007) Assistant Director, Regional Office NSO,
Bahawalpur
o Tariq Mahmood (August'2007) Branch Manager, National Saving Center II Bahawalpur
o Ghulam Murtaza Syal (August '2007) Cashier , National Savings Center II Bahawalpur
o Rana Sb (August '2007) Operational Manager, National Savings Center II Bahawalpur
o Usman Sb (August '2007) Account Officer, National Savings Center II Bahawalpur
o Noreen (August '2007) Account Officer, National Savings Center II Bahawalpur
o Fredric S. Mishkin (2006) Financial Markets + institutions 5 th edition
38
APPENDIXES
Appendices:
This Scheme is entertaining the existing account holders but is not opening new accounts .
Monthly deposits from Rs. 500, to Rs. 5000, in this account for continuous 84 months entitle the
investor to receive an amount which is equal to his monthly deposit every month , after the
A missing installment can be deposited within 6 months of the month to which the installment
relates with a surcharge at the rate of two rupees per hundred per month.
40
Only one account may be opened in the name of any one person either singly or jointly with
(a) on the accounts opened before 01-07-2000. (For period of five years).
Eligibility.
(a) Payable to the holders jointly or to either of them with the consent of the
other, or
Only one account may be opened in the name of one person either singly or jointly with another
person. Father or mother or legal guardian may, however, open an additional account on behalf of
a minor.
Deposit in multiple---
1. The account may be opened with a minimum monthly installment of five hundred rupees.
2. The amount of monthly installment may be increased in multiples of one hundred rupees,
but the installment less than last installment shall not be placed.
3. The monthly installment shall not exceed five thousand rupees whether held by one person
or by two person jointly. And for the purpose of calculating the individual installments
when two persons are joint account holders, one half of the joint installment shall be assumed
to belong to each.
4. An account holder hall, under no circumstances, exceed the monthly maximum permissible
limit of instalment
Monthly installment:-
2. Any installment received in the first fortnight of the month may be reckoned to have been
received on the 1st month and an installment received in he second fortnight of the month may
(3). advance installments for any period may also be received provided the is talment for each
month does not exceed five thousand rupees:Provided that such deposit shall be reckoned to
per month, and such deposit shall be reckoned to have been made on the 16 the of the month to
(5) The profit earned under these rules shall be subject to tax as per rules.
(6)Closure of Account,-
six years; or
(2) Omitted.
1. The monthly instalment in an account on completion of each 6 years shall be deemed to have
1. Any person wishing to open an account should apply to any National Savings Center, here in
2. Application need not necessarily be made in person, but the applicant sign the application and
stat his or her name, father’s or husband’s name, complete address and occupation.
3.The applicant shall also affix his or her signature on the specimensignature card.
4. If the account is desired to be opened through a bank, the Bank Manager would attest the
signature of the depositor, or his or her Thumb-impression of the depositor is unable to write, or
if the Accounts desire to be opened through an agent shall attest the Signature or thumb-
impression of the applicant before the Center-in-Charge where the account is desired to be
opened.