REGULAR INCOME CERTIFICATES OF NATIONAL SAVINGS PAKISTAN

Categorization:

Securities

Monetary Units:

₨50,000, ₨100,000, ₨500,000, ₨1,000,000, ₨5,000,000, ₨10,000,000

Genesis:

Annum 1993

Distribution of Returns:

In monthly intervals

Duration of Validity:

Lustrum

Designated Beneficiaries:

The populace at large

Investment Vehicles:

Liquidity & Negotiable Instruments

In contemplation of the cyclical fiscal desires of the citizenry, the Regular Income Certificates (RICs), bearing a lustrum of validity, were inaugurated on the 2nd of February, 1993. These securities are accessible in multiples of:

• 50,000/-, 100,000/-, 500,000/-, 1,000,000/-, 5,000,000/-, 10,000,000/-

Yields are disbursed in monthly sequences, commencing from the allotment date of the securities.

Eligibility Criteria for Capital Allocation:

Pakistani nationals, encompassing those residing beyond borders, are entitled to allocate capital towards RICs as singular adults, juveniles, or in a dual adult consortium where disbursements can be appropriated either collectively (Joint-A) or by any singular custodian (Joint-B). An adult is also sanctioned to allocate on behalf of a solitary juvenile, dual juveniles jointly, or in concert with a juvenile.

Procurement Methodology:

RICs may be procured at any National Savings Centre (NSC), authorized banking establishments, and the State Bank of Pakistan (SBP), by completing the SC-1 (Application form), available gratuitously at all aforementioned distribution points.

Prerequisites for Application Submission:

For Adult Pakistanis:

• A replica of the Computerized National Identity Card (CNIC)

For Expatriate Pakistanis:

• A replica of the National Identity Card for Overseas Pakistanis (NICOP) or Pakistan Origin Card (POC)

For Juveniles:

• A replica of Form B or Child Registration Certificate (CRC) as sanctioned by NADRA

Investment Submission Modality:

RICs may be acquired through the exchange of liquid assets at the Distribution Office or by presenting a cheque/draft/pay-order. The Security shall be bestowed promptly against liquid transactions. Conversely, for transactions via cheque/draft/pay-order, the Security shall be bestowed subsequent to the financial instrument's realization, post-reception of clearance confirmation.

Investment Parameters:

• Minimum: ₨50,000
• Ceiling: Boundless

Liquidation Process:

RICs are redeemable at any moment, with service fees applied as follows: Redemption prior to the completion of 1, 2, 3, and 4 years from issuance subjects to service fees of 2%, 1.50%, 1%, and 0.50% of the nominal value respectively. Post the quadrennial mark, no service fees are applicable.

Securities allocated/purchased/reallocated post-November 15, 2010, are not eligible for reallocation upon maturation.

Yield/Profit Ratios:

The yield is pegged at 1250 or 15% per monthly cycle.

Taxation and Obligatory Almsgiving:

The taxation rate is delineated as follows:

• For Filers: Individuals catalogued in the Active Tax Payer List (ATL), the Withholding Tax Rate is set at 15% of the yield/profit, disregarding the date of investment and yield amount.
• For Non-Filers: Individuals not catalogued in the Active Tax Payer List (ATL), the Withholding Tax Rate is fixed at 30% of the yield/profit, independent of the investment date and yield amount.

• FAQ's:
• FAQ 1: Unraveling the Core of Regular Income Certificates (RICs) and Their Functional Framework?

• Answer: At their core, Regular Income Certificates (RICs) embody financial instruments meticulously crafted to satisfy the recurrent monetary needs of individuals. Launched on February 2nd, 1993, these certificates boast a lifespan of five years and are available in denominations ranging from ₨50,000 to ₨10,000,000. Investors are graced with returns on a monthly cadence, commencing from the issuance date of the certificate. Specifically designed for the Pakistani populace, including those domiciled abroad, RICs offer a gateway to invest in assets characterized by their liquidity and the capacity for negotiation.

  FAQ 2: Criteria and Process for Securing RICs

  Answer: Eligibility for investing in RICs extends to all Pakistani nationals and expatriates alike. Acquisition of these certificates is feasible for individuals, on behalf of minors, or via a collective arrangement, presenting options for unified or singular control over disbursements. The procurement phase necessitates the submission of a fully filled SC-1 form at specified financial entities, including the National Savings Centre (NSC), sanctioned banking institutions, or the State Bank of Pakistan (SBP). Investment modalities encompass cash transactions or the utilization of banking instruments such as cheques or drafts, with RICs being issued immediately or subsequent to payment clearance.

  FAQ 3: Investment Prerequisites and Commitments Associated with RICs

  Answer: The gateway for RIC investments opens at ₨50,000, unfettered by a maximum ceiling. The option for early redemption exists, albeit subject to service levies that taper from 2% to 0.5% across the initial four years, with no fees imposed beyond this duration. Certificates procured post-November 15, 2010, do not enjoy transferability upon term completion. Monthly yields are computed at a consistent rate of 1250 or 15%. Tax liabilities diverge for tax filers and non-filers, pegged at 15% and 30% of the returns respectively, irrespective of the investment's inception or the quantum of yield.