Draft:Behbood Saving Certificates
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Last edited by Schazjmd (talk | contribs) 2 seconds ago. (Update) |
Behbood Saving Certificates are government-backed savings instruments introduced in Pakistan to provide financial security to vulnerable segments of society. Launched in 2003 by the Government of Pakistan through the Central Directorate of National Savings (Pakistan), the scheme is aimed at senior citizens, widows, and individuals with disabilities. It offers attractive profit rates, regular monthly payouts, and a risk-free investment avenue backed by the sovereign guarantee of the government.
Introduction
[edit]Behbood Saving Certificates are designed as both a social welfare initiative and an investment instrument. The scheme is aimed at providing a stable monthly income to eligible investors, ensuring financial independence and protection for those who may be economically vulnerable. Its risk-free nature is underpinned by the sovereign guarantee of the Government of Pakistan.
History
[edit]The scheme was introduced in 2003 [1] in response to the growing need to support vulnerable groups—particularly senior citizens, widows, and persons with disabilities. Since its inception, the Behbood Saving Certificates program has undergone several modifications to its profit rates, investment limits, and administrative procedures. These changes have been implemented to keep the scheme competitive and responsive to the evolving economic conditions and policy objectives of the government.
Eligibility and target groups
[edit]Behbood Saving Certificate is exclusively available to:
- Senior citizens: Individuals aged 60 years and above.
- Widows: Women who have lost their spouses, and not remarried again, regardless of age.
- Individuals with disabilities: Persons who can provide valid medical certification of their condition.
- Joint accounts: Accounts can be opened jointly, allowing collaborative investments as in clause (a) and (b) in their joint names.
Applicants must submit proof of eligibility along with a valid Computerized National Identity Card (CNIC) and any additional supporting documentation as required.
Features and benefits
[edit]Key features of the Behbood Saving Certificates include:
- High profit rates: Among the most competitive in Pakistan’s national saving schemes, providing a substantial monthly income.[2]
- Risk-free investment: As a government-backed scheme, it offers minimal risk.
- Monthly payouts: Profits are disbursed on a monthly basis, ensuring a steady income stream.
- Fixed tenure: The investment has a maturity period of 10 years.
- Investment limits: The minimum investment is PKR 5,000, with individual investment caps at PKR 5 million and joint investments at PKR 10 million.
- Tax and Zakat exemptions: Profits are exempt from withholding tax and compulsory Zakat, thereby maximizing net returns for the investor. BSC profits are taxed as normal taxable income under NTR—not under Section 7B—with a maximum tax rate of 5%, unlike the progressive rates on bank deposits.[3]
| From | Till | Profit on 100,000 (Pakistani rupees) | Profit rate (per annum) |
|---|---|---|---|
| January 31, 2025 | 1,140 | 13.68% | |
| November 4, 2024 | January 30, 2025 | 1,160 | 13.92% |
| September 25, 2024 | November 03, 2024 | 1,180 | 14.16% |
| May 14, 2024 | September 24, 2024 | 1,280 | 15.36% |
| March 19, 2024 | May 13, 2024 | 1,300 | 15.60% |
| Febraury 21, 2024 | March 18, 2024 | 1,280 | 15.36 |
Application process
[edit]The application process is streamlined to ensure ease of access for eligible individuals:
- Documentation: Applicants must present their CNIC along with proof of eligibility (e.g., pension documents, widowhood certificates, or medical certificates).
- Form submission: A completed application form is required, available at any designated branch of the Central Directorate of National Savings.
- Verification: Submitted documents are verified by the CDNS.
- Issuance and payout: Once approved, the certificates are issued and beneficiaries begin receiving monthly profit payments, typically through direct bank deposits.
Administrative oversight
[edit]The Central Directorate of National Savings, operating under the Ministry of Finance, administers the Behbood Saving Certificates. The CDNS is responsible for ensuring that the scheme operates transparently and efficiently. Regular audits, performance evaluations, and policy reviews are conducted to maintain accountability and improve service delivery.
Economic and social impact
[edit]Behbood Saving Certificates have made a significant contribution to the financial stability of Pakistan’s vulnerable populations. By providing a secure and regular income, the scheme helps reduce poverty among senior citizens and widows and supports economic resilience at the household level. Additionally, it encourages a culture of saving and financial planning, particularly among those who may not have access to conventional banking services.
Criticisms and challenges
[edit]While the scheme is widely appreciated, it has faced certain criticisms:
- Accessibility issues: Some beneficiaries, especially those in remote areas, find it challenging to access the nearest CDNS branch.
- Policy fluctuations: Changes in profit rates and investment limits have occasionally led to confusion among potential investors.
- Operational delays: There have been reports of delays in processing applications or disbursing monthly profits, affecting beneficiary trust.
Ongoing reforms and technological upgrades are being considered to address these issues and enhance the scheme’s efficiency.
See also
[edit]References
[edit]- ^ "Behbood Saving Certificates". National Savings. April 1, 2018.
- ^ "Behbood Saving Certificates Profit Rates". National Savings. April 1, 2018.
- ^ "Tax Applicable on Behbood Saving Certificates". TaxationPK. December 17, 2024.
- ^ "Tax applicable on Behbood Saving Certificates". National Savings Pakistan. February 20, 2024.