ISLAMABAD: The federal government has approved amendments to relevant rules of National Savings Schemes with regard to nominee in case of death of investor, official sources told Business Recorder.

Central Directorate of National Savings (CDNS), an attached Department of Finance Division, has launched a number of schemes including Defence Savings Certificates, Bahbood Savings Certificates, National Savings Deposit Accounts and Post Office Savings Bank Accounts which have not only provided relief and social security to the vulnerable segments but also helped the government to bridge its financial shortfalls.

The CCLC was also informed that according to the existing National Saving

Schemes Rules, in case of death of an investor in National Savings Schemes, principal amount and accrued profit are paid to the nominee(s), according to the share(s) as set by the account holder, at the time of opening of account.

In a Judgment of August 23, 2016, Sindh High Court (SHC) had directed to align these Rules / Procedures of payment to the nominee(s) with Muslim Law of Inheritance. It was further directed that a summary for proposed amendments in the relevant Rules of National Savings Schemes be considered by CCLC and referred back to Finance Division with the direction to carry out further due diligence in the matter and revise the Rules in light thereof.

According to sources, proposed changes in the rules of nomination were publicized through print media to solicit public opinion/response from the investors/certificate holders through advertisement in the Newspapers. 174 objections/ suggestions were received till April 10, 2018 from customers of National Savings as well as from other citizens about the proposed amendments. Furthermore, as per directions given by the CCLC, the CDNS has carried out further due diligence in the matter keeping in view the suggestions received from general public and in the light of Judgment of Sindh High Court and decisions of Supreme Court of Pakistan given on different petitions.

 The amendments in the Rules of National Savings Schemes (NSS) i.e. Defence Savings Certificates, Bahbood Savings Certificates, National Savings Deposit Accounts and Post Office Savings Bank Accounts have been proposed that in case of death of the purchaser of certificates, payment i.e. principal amount and profit thereon if any till date of payment in respect of certificates of the deceased shall be payable to his logical heirs according to the succession certificate issued by a court of competent jurisdiction. However, in case, where total net payable amount does not exceed Rs 100,000, payment shall be made to the nominee(s), upon furnishing duly verified and attested copy of Family Registration Certificate (FRC) issued by NADRA and affidavit specifically set out for the purpose, to the effect that he/she shall be bound to distribute the received amount among all the legal heirs according to their due share as per law of the land.

The sources maintained that that final notification containing proposed amendments in the Rules of National Savings Schemes with regard to “Nominee” in case of death of investor have been vetted by Law & Justice Division subject to approval of the federal government. The sources said, amendments in the relevant Rules of National Savings Schemes with regard to “Nominee” in case of death of investor, approved by the CCLC have been ratified by the Federal Cabinet.—MUSHTAQ GHUMMAN