The Federal Cabinet, which is scheduled to meet on Tuesday (today) with Prime Minister Imran Khan in the chair, will approve amendments in rules regarding nominee in case of death of investor in National Savings Schemes (NSS), well-informed sources told Business Recorder.
Central Directorate of National Savings (CDNS), an attached department of Ministry of Finance has launched a number of schemes including Defence Saving 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 bridge financial shortfalls.
According to the existing National Savings Schemes Rules, in case of death of an investors 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 has directed to align these rules/procedures of payment to the nominees(s) with Muslim Law of Inheritance.
A summary for proposed amendments in the relevant Rules of National Savings Schemes was considered by CCLC and referred back to the Finance Ministry with the direction for carrying out due diligence in the matter and revise the Rules in its light.
The sources said, proposed changes in the rules of nomination were publicised through print media to solicit public opinion/ response from the investors/ certificate holders through advertisement in newspapers. 174 objections/ suggestions were received till April 10,2018 from the 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 SHC and decision of Supreme Court of Pakistan given in different petitions.
According to sources, 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 the date of payment in respect of certificates of the deceased shall be payable to his legal heirs according to the succession certificate issued by the court of competent jurisdiction.
However, in cases where total net payable amount does not exceed Rs 0.1 million, 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 further stated that the notifications containing the proposed amendments in the Rules of National Savings Certificates with regard to " nominee" in case of death of investor have been vetted by the Law and Justice Division subject to the approval of Federal Government.