The decision has been taken keeping in view the hardships of the investors who purchased National Savings Certificates from the scheduled banks, according to a press release issued by the Central Directorate of National Savings here on Tuesday.
The suspension of agency function of banks had earlier resulted in discontinuation of sale/reinvestment of National Savings Schemes through authorised banks.
The decision was applicable on the depositors who purchased national savings certificates from the banks, as they were denied the benefit of reinvestment on their deposits, which matured on or after June 13, 2003.
A large number of complaints from such investors, particularly from those, who were living abroad and could not visit their banks on the specific dates, started pouring in the directorate.
The government is taking care of those segments of the society who really deserve special attention.
The "Pensioner's Benefit Account" for the benefit of pensioners and the "Bahbood Savings Certificate" for widows/senior citizens are found helpful in reducing the economic burden of the pensioners and widows/senior citizens simultaneously, providing them an opportunity to keep their money in safe custody.
The government is committed to provide social safety net to these segments of the society.
To accommodate them, the government has recently reduced the service charges on Pensioners' Benefit Account and Bahbood Savings Certificates Scheme from 2 percent, 1.5 percent, 1 percent and 0.50 percent to 1 percent 0.75 percent, 0.50 percent and 0.25 percent on the principal amount, if encashed or withdrawn before completion of one year, two years, three years and four years from the date of deposit, respectively.
Similarly, for the larger interest of general investors, the service charges on regular income certificate have also been reduced from 3 percent, 2 percent, 1 percent and 0.50 percent to 2 percent, 1.5 percent, 1 percent and 0.50 percent, if encashed before completion of one, two, three and four years, respectively.
Moreover, the government has also allowed the charities/non-profit organisations to invest in Defence Savings Certificate, Special Savings Certificate (Registered) Account, Regular Income Certificate and Savings Accounts up to the maximum limit of Rs 10 million only.
The present decision is also in line with the government's policy to facilitate the general public to the maximum possible extent.