SOPS/ PROCEDURES OF SARWA ISLAMIC PRODUCTS

UNDER THE UMBREALLA OF RAFA NATIONAL SAVINGS

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1. INTRODUCTION

The Central Directorate of National Savings (CDNS) has established an Islamic window
named Rafa National Savings (RNS). The role of RNS is to provide different Shariah-
compliant investment accounts under “Sarwa Islamic Savings Account Rules, 2019”. Sarwa
Islamic Savings Account (SISA) Rules were approved by the Federal Cabinet and published in
rd
Gazette of Pakistan on 23 October, 2019, whereby the operations of this scheme will be
allowed from National Savings Centers. To ensure Shariah compliance of the schemes and
operations, a Shariah Supervisory Board (SSB) comprising renowned Shariah scholars is
appointed by the CDNS.
RNS has launched Shariah-compliant Sarwa Islamic Savings Account (SISA) and Sarwa
Islamic Term Account (SITA). Term Account Schemes will comprise of four different tenures of
one (1) year, three (3) years, five (5) years and ten (10) years. In this phase CDNS is offering
SITA-1 year, SITA-3 years and SITA-5 years only. All policy related matters/rules pertaining to
this scheme shall be referred to RNS, CDNS.

PRODUCTS OFFERED THROUGH RAFA NATIONAL SAVINGS (RNS)

1. Sarwa Islamic Savings Account (SISA)
2. Sarwa Islamic Term Account (SITA) – 1 Year
3. Sarwa Islamic Term Account (SITA) – 3 Year
4. Sarwa Islamic Term Account (SITA) – 5 Year
5. Sarwa Islamic Term Account (SITA) – 10 Years (Anticipated)

2. PROCEDURAL ASPECTS OF SISA & SITA

a) OFFICE OF OPEN: SISA and SITA shall be opened through offices of the CDNS
and any other offices designated by CDNS in consultation with Finance Division.
b) PROCEDURE: RNS & CDNS shall, in relation to the Account, amend if required in
consultation with the Finance Division procedures for sale, encashment, profit
payment from time to time to carry out the purpose of the “SARWA ISLAMIC
SAVINGS ACCOUNT” rules.
c) INVESTMENT LIMIT:
(1) The SISA Account can be opened with a deposit of one hundred rupees.
(2) The SITA can be opened with minimum investment limit of Rupees Fifty
Thousand.
(3) There shall be no maximum limit for investment in the SITA; however, the
investment shall be made in multiple of Rupees Fifty Thousand.
d) FORM OF THE ACCOUNT: The Account (both SISA & SITA) shall be opened in
scripless form; means no physical instrument will be given to the customer. Only a
system generated slip will be provided to the customer.
e) ACCOUNT OPENING PROCESS: Customer approaches NSC, then goes to
Relationship Officer/Field Compliance Officer (FCO). CNIC will be required for the
process and Biometric/Verisys will be performed through NADRA/CBA. CBA
screens the customer against NACTA, UNSC and PEP lists. Then, KYC/CDD forms
will be filled by dealing officer/FCO in CBA by interviewing the customer. The

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 identity documents will be scanned and attached and then FCO will send the case
to the Officer In-charge (OI). The OI will review the case and access the customer
risk on Customer Risk Assessment Form. Accordingly, the customer will sign the
KYC/CDD form to open the account and deposit/invest funds in his/her account.
f) PRODUCT TENURE: There are four tenures defined for the SITA products. It will
initially be offered for one year, three years, and five years tenure as Sarwa Islamic
Term Accounts (SITA)
g) ELIGIBILITY CRITERIA:
a) The Account may be purchased by any of the following namely:-
 Single adult
 Minor
 Two or more adults in their joint names
(i) Payable to the holders jointly or payable to either with written consent of
the others to be called joint class A; or
(ii) Payable to either to be called joint class B.
b) The payment for opening of Sarwa Islamic Saving Account (SISA) from National
Savings Centre (NSC) may be made through cash, bank draft, pay order,
crossed cheque, through Conventional Savings Account already opened in the
NSC [ADCs will also be added when available].
c) Customer is liable to fill an application form in digital form or a manual form,
obtainable free of charge, from digital platform or from office of issue
respectively along with provision of any other documents and information as
may be asked for the purpose from time to time.
d) The SISA is to be opened after complete KYC and Bio-Verisys of Customer(s)
e) The payment for opening of Sarwa Islamic Term Account (SITA) from National
Savings Centre (NSC) shall be made through Customer’s SISA Account only.
h) VALIDITY PERIOD: The SISA Account shall be opened for unlimited period and
shall remain valid for principal payment and profit payment thereof, if any, till such
time it’s linked SITA Account/Investment is encashed or withdrawn by the registered
holder under these rules.
i) AUTO-REINVESTMENT (FOR SITA ONLY): Auto-Reinvestment is not allowed,
however provision for its configuration has been taken into account. A provision of
automatic re-investment is allowed in a way that a customer shall submit a consent
at the time of purchase/investment on Purchase/Account Opening Application form
as follows:
a) I/We allow/not allow to reinvestment our SITA after maturity.
b) In case, if Customer opts for non-reinvestment after maturity, his/her SITA
Principal Amount along with any Profit (payable) may automatically be
deposited to its linked SISA Account.
c) If customer opts for reinvestment, his/her principal amount shall be reinvested
and accrued profit, if any, shall be credited to his/her linked SISA.
j) TRANSFER OF OWNERSHIP: Transfer of ownership is not allowed, unless the
account holder is deceased, and in case of death, account of the deceased shall be
payable to the legal heirs as nominated (in case investment [principal + profit]
amounts to five hundred thousand only) or according to succession certificate
issued by a Court of competent jurisdiction/NADRA.
k) PLEDGING.-The investment made through SITA shall not be pledge-able.
l) PAYMENT IN DEFAULT: Any payment which may have been made in
contravention of rules/SOPs or by mistake shall be refundable and in the event of
failure to refund may, in addition to other remedies for the recovery thereof, be

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 deducted from any money payable to the Federal Government by the recipient
person from his estate or be recovered as arrears of land revenue.
m) SUCCESSION: In case of death of the account holder, payment of principal and
profit payment, if any, in respect of the account of the deceased shall be payable to
the legal heirs according to succession certificate issued by a Court of competent
jurisdiction/NADRA for investment more than Rupees Five Hundred Thousand.
In case of death of a customer of SITA, the principal and accrued profit thereon till
the date of death, shall be credited into the respective SISA of deceased customer.
Further, payment to the successors/nominees (as the case may be) may be made
through the respective successors/nominees’ SISA Account opened for the
purpose, i.e.
Over the death of Customer, upon informing to Branch via Death Certificate;
a) Both the SITA (Term Account) and SISA (Correlated Account) accounts of the
Dead Customer are to be marked as Deceased.
b) The Principal Amount in SITA shall be transferred into the SISA by
Pre-Encashment Transaction and gets closed.
c) The accrual process is to be stopped in SITA account of the Deceased
Customer; while for the SISA, it shall continue.
d) The Profit Amount for SITA from the last Accrual posting date (if before the
Death Date) till the Customer Death Date is credited into SISA.
e) The Accrual generated (but not posted) after the Death Date is to be reversed in
the same head (Profit related) for future Audit reference.
f) The Profit (related to SITA) Posted into SISA after the Death Date (due to non-
informing about Death for a certain period) is to be recovered from the SISA
account using reversal entries in the same GLs posted initially. Furthermore, for
the same period, the Accrual is required to be generated in Back-date over
SISA Profit rates and then this Profit needs to be posted into SISA.
g) The Successors/Nominees need to show the Court Order/Succession
Certificate for the Claimant Amount to the Branch (NSC) of Deceased Customer
with clear mention of his/her Share/ Ratio for the claim.
h) The Successors/Nominees need to open a SISA account (if not already
opened) in Branch (NSC) of the Deceased Customer, to get the transferred
fund (with his/her Share Amount) from the SISA of Deceased Customer to
his/her SISA."

Note: Only payment to nominee through his/her SISA account is allowed i.e. no transfer to
nominee transaction shall be permitted.

n) PROFIT PAYMENT/ DISBURSMENT:

a) For SISA, profit accrual will be on Daily Closing Balance and Posting date will
be 1st of next month. E.g. Profit of January will be accounted on 1st February. If
customer closes account mid of the month, they will get profit that has been
accrued till previous day.
b) In case of SITA,
As of now Profit Payment Frequency and payment thereof in case of an early
termination is as illustrated below:
a. Profit would be paid at maturity (for 1 year SITA), half-yearly (for 3 years
SITA), monthly (for 5 years SITA) & monthly (for 10 years SITA) &
upon maturity (for annual profit payment scheme for 10 years SITA).
b. For 1 Year SITA, profit shall be paid on maturity. In case the investment is
withdrawn before the completion of 1 year, say after 8 Months and 29 days,
he/she shall be eligible for 8 Months Profit @ of Average Rate of SISA for
that specific period. [i.e. Profit of SISA for complete month be allowed only]
c. For 3 Years SITA, the profit shall be payable after completion of every 6
months. In case the investment is withdrawn before the completion of 1

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 year, say after 5 Months and 10 days, he will be eligible for 5 Months Profit
@ of Average Rate of SISA for that specific period. [i.e. Profit of SISA for
completed months be allowed only]
d. For 5 Years SITA, the Profit shall be payable monthly, after completion of
every one-month period
e. For 10 Years SITA, profit shall be paid either monthly or in case of annual
profit scheme at the time of maturity or at early encashment for the
completed year(s).
(a) In case the investment is withdrawn before the completion of 1 year [for
annual profit scheme, say after 11 Months and 10 days, he will be
eligible for 11 Months Profit @ Average Rate of SISA for that specific
period. [i.e. Profit of SISA for completed months be allowed only]
o) ZAKAT. – This is the default product configuration. Zakat shall be deducted on
1st Ramzan from SISA as per NISAB amount. For exemption, the customer shall
have to follow the due process of submitting CZ-50. The branch will enter the record
accordingly. SITA is exempted from compulsory deduction of Zakat.
p) APPLICABLE TAX: Profit payment, on the account shall be subject to tax in
accordance with the applicable laws.
q) MINIMUM BALANCE – SISA: Rs 100/- has to be maintained as minimum balance.
r) ALLOWED CHANNELS: Purchase/SISA Account Opening is allowed via Cash or
Cheque/bank draft at NSC counter and through ADC, RAAST or IBFT etc on
availability/installation of electronic/online channels for opening as well as
depositing. Further, for SITA the transactions can only be routed through SISA
account
s) LINKING OF SISA with SITA: For linking of SITA with SISA, the Title of Account for
both SISA and SITA should be same.
t) NUMBER OF UNITS ALLOWED: Only One Single deposit against SITA Account
shall be allowed. For every new deposit / investment into SITA, a new SITA Account
shall be opened for the same Customer; however the same shall be linked with
his/her already opened SISA Account.
u) NUMBER OF ACCOUNTS LIMIT: In case of SITA there shall be no limit of number
of accounts to be opened at a single branch/NSC. However, for SISA, only one
Account shall be opened against the specific title / Customer in one NSC.
v) PRE-MATURE WITHDRAWAL CHARGES: Following charges on pre-mature
withdrawal of 5-10Years [monthly Profit Payment Scheme only] SITA shall apply:
a) Before Completion of 1 Year 1.00 % of Principal Amount Withdrawn
b) Before Completion of 2 Year 0.75 % of Principal Amount Withdrawn
c) Before Completion of 3 Year 0.50 % of Principal Amount Withdrawn
d) Before Completion of 4 Year 0.25 % of Principal Amount Withdrawn
w) DAYS OF INACTIVITY AFTER WHICH SISA IS TO BE MARKED AS DORMANT:
The Accounts shall be marked as dormant if no debit transaction is made for 365
days.
x) PROOF OF LIFE FOR CUSTOMER: The customer shall have to submit proof of life
on yearly basis.

3. SISA/SITA PRODUCT FEATURES SUMMARY

(i) Sarwa Islamic Savings Account (SISA)

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 This is the shariah-compliant alternative of the regular savings account of CDNS.
Minimum investment amount of SISA is Rs.100 and profit is calculated on daily
closing balance of the account, paid on monthly basis.

Parameter Explanation Parameter Explanation

Ministry of Finance,
Issuer Availability Yes
Government of Pakistan
Eligibility Individual, Joint Holders Form Account-based
Monthly. Profit for
Frequency of Profit the month to be
Tenors -- st
Distribution credited on 1 day
of next month
Office of Issue/ Premature
National Savings Centers Permitted
Encashment Withdrawal
Compounding of
Currency of issue Pakistani Rupees No
Profit
No Maximum Limit.
Profit Calculation On daily closing balance Investment Limit:
Minimum Rs. 100
As per the rules of the
Tax & Zakat
Govt of Pakistan

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 (ii) Sarwa Islamic Term Account (SITA) – 1, 3, 5 and 10 Years
Minimum Investment amount is Rs. 50,000. Profit would be paid as per anticipated
profit rates based on investment amounts and paid at maturity (for 1 year SITA),
half-yearly (for 3 years SITA), monthly (for 5 years SITA), monthly or yearly (to be
paid on maturity or at the time of encashment) [for 10 years SITA].

Parameter Explanation Parameter Explanation

Issuer Ministry of Finance, Form Account-based
Government of Pakistan
Eligibility Individual, Joint Holders, Tenures 1 year, 3 years, 5 years &
10 years
Frequency of 1 Year SITA - On Maturity, Office of Issue/ National Savings Centers
Profit 3 Years SITA - Half Encashment
Distribution Yearly,
5 Years SITA - Monthly
10 Years SITA – Monthly
or annually [for annual
scheme, profit to be
disbursed on Maturity or at
the time of encashment for
complete years]
Currency of Pakistan Rupees Premature Permitted
issue Encashment/
Withdrawal
Service On 5 & 10 Years Tenure Compounding of Not allowed. All profit
Charges (Service Charges shall profit payments to be credited
apply on Pre-mature to SISA.
Withdrawal)
Profit As per investment Investment Limit: No upper limit, however
Calculation amount minimum Investment
Limit is Rs. 50,000
Zakat SITA is exempt from Zakat Tax Tax shall be deducted as
however, any profit per the rules of
accrued thereupon and Government of Pakistan
transferred to SISA will be
subjected to Zakat
cumulatively with the
balance available in SISA
Account. Field Offices
shall therefore be required
to keep the customers well
informed and keep CZ-50
forms readily available.

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REPORTING STRUCTURE

Following product wise reports shall be observed by the NSCs and RDs; however, additional
reports shall be communicated by Rafa National Savings (RNS) to field offices as and when
required.
1. Reports for SISA
On the analogy of having the same template following reports (but not limited to) are to be
maintained by the field offices.

i. SISA Deposit Journal

ii. SISA Withdrawal Journal
iii. SISA Profit Journal
iv. SISA Account Statement
v. SISA Zakat Journal
vi. SISA Tax Journal
2. Reports for SITA (All Tenures)
On the analogy of STSC 12M, RIC & SSC(R)/SSA having the same template following reports
(but not limited to) shall be required
i. SITA Deposit Journal
ii. SITA Withdrawal Journal
iii. SITA Profit Journal
iv. Index Register
3. Impact on other Reports
The Sharia Compliant Product shall have an impact in some already developed reports
i. Daily Report / Cash Book Report (NS-4)
a) In Daily Report the heading “A” i.e., “Sales/Deposit and
Encashment/withdrawals” is revised as “Sales/Deposit and
Encashment/withdrawals for conventional Savings Schemes.” A row for Shariah
Compliant Schemes as “A1” is created after serial number 20 of heading “A”.
“A1” as “Sales/Deposit and Encashment/withdrawals for Shariah Compliant
Schemes”
b) The heading “B” i.e. “Payment of Profit” is revised as “Payment of Profit for
conventional Savings Schemes.” A row for Shariah Compliant Schemes as “B1”
is created after serial number 21 of heading “A”. “A1” as “Payment of Profit for
Shariah Compliant Schemes”
c) A row is added in the heading “D” i.e. “Deduction/Refund of Zakat” after serial
number 1 as “Code 101 (SISA)”
ii. Monthly Report (NS-7)
a) In Monthly Report (NS-7) the heading “A” i.e. “Sales/Deposit and
Encashment/withdrawals” is revised as “Sales/Deposit and
Encashment/withdrawals for conventional Savings Schemes.” A row for Shariah
Compliant Schemes as “A1” is created after serial number 20 of heading “A”.
“A1” as “Sales/Deposit and Encashment/withdrawals for Shariah Compliant
Schemes”.
b) The heading “B” i.e. “Payment of Profit” is revised as “Payment of Profit for
conventional Savings Schemes.” A row for Shariah Compliant Schemes as “B1”
is created after serial number 21 of heading “A”. “A1” as “Payment of Profit for
Shariah Compliant Schemes”

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 c) A row is added in the heading “D” i.e. “Deduction/Refund of Zakat” after serial
number 1 as “Code 101 (SISA)”
iii. Monthly Report (NS-10)
a) In Monthly Report (NS-10) the heading “A” i.e. “Sales/Deposit and
Encashment/withdrawals” is revised as “Sales/Deposit and
Encashment/withdrawals for conventional Savings Schemes.” A row for Shariah
Compliant Schemes as “A1” is to be created after serial number 22 of heading
“A”. “A1” as “Sales/Deposit and Encashment/withdrawals for Shariah Compliant
Schemes”.
(a) The heading “B” i.e. “Payment of Profit” is revised as “Payment of Profit for
conventional Savings Schemes.” A row for Shariah Compliant Schemes as
“B1” is to be created after serial number 21 of heading “A”. “A1” as
“Payment of Profit for Shariah Compliant Schemes”
(b) A row is added in the heading “D” i.e. “Deduction/Refund of Zakat” after
serial number 1 as “Code 101 (SISA)”
iv. Monthly Consolidated Report Centre and Scheme-wise (NS-13)
v. Number of Investor Scheme-wise
vi. Institutional and Individual Investment Position Report
vii. Customer Investment Summary and Detail Report
viii. Customer Profile
ix. Customer Ledger

Note: Similar impacts in CBA reports mentioned above at serial no. (iv-x) for
incorporation of Shariah Compliant Saving Schemes as envisaged in NS-04, NS-07 and
NS-10 are also required

4. Reports on Pool Management

i. Report on total deposits of SISA and all three SITAs (to be provided on a monthly
basis)
Report of accounts/ deposits
Deposits as of month Average balance for the
SISA No. of accounts end month
SITA - 1
Year
SITA - 3
Year
SITA - 5
Year
SITA -10
Years
SISA
Progressive
Total

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 ii. Total Investment, Encashment/Withdrawal & Profit earned on the investments
made (to be provided on a monthly basis)

Total Withdrawal/ Total Profit

Total Investment Rate of
Encashment Paid during the
S# Product during the Month Profit
during the Month Month
1
SISA
2
SITA-1Y
3
SITA-3Y
4
SITA-5Y
5 SITA-10Y
(Monthly)
6 SITA-10Y
(Annually)
Total For the Current
Month
Progressive Monthly
Total

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