A study on the National Savings Department

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The history of the NATIONAL SAVING DEPARTMENT dates back to the second world-war, when British government introduced several devices to collect funds to meet the war requirements. After independence the NATIONAL SAVINGS ORGANIZATIONS an attached department of the ministry of finance, Government of

Pakistan was responsible for the policy matters, publicity and the execution of various savings schemes. Till 1971, the activities of the NATIONAL SAVINGS DEPARTMENT were merely promotional in nature, whereas the post offices and the commercial banks were the operative agent for the investment purposes. From 1972, NATIONAL SAVINGS DEPARTMENT is engaged in the operation of various national saving schemes through its own branches, called "NATIONAL SAVINGS CENTERS". As soon on may 1999, there were 366 branches in the country, provides exclusive to our investor, which was other wise not possible through post offices and the commercial banks.


The history of National Savings Organization dates back to the year 1873 when the Government Savings Bank Act, 1873 was promulgated. During the first world war, the British Government introduced several schemes to collect funds to meet the expenditure. It was in the context that the post office cash certificates and during the second world war, post office Defence Saving Certificates were floated. The need to set up a separate agency was felt and the National Savings Bureau was estaboished in 1943-1944 as an attached department of the ministry of finance of the undevided Government of India. The department was headed by National Savings Commissioner with the status of the joint secretary.

At the time the main function of the National Savings were to initiate all policy matters and issue directives for the execution of policy decision of the Central Government, and to review the savings schemes from time to time. Gradually, Savings Organizations were established in almost all the provinces of the sub-continent with the objective of popularizing the saving schemes among the masses as well as to supervise guide and control the working of authorized agents under their jurisdiction. The agents, who were appointed by the local authorities, were paid commission @ 2 ½ on the investment secured by them. These authorized agents were in those days the only agency for securing investment in terms of Saving Certificates from the general public. In nut shell the central agency via. National Savings Bureau, Siilma, was mainly concerned with the policy and the planning matters of the Savings Schemes vested with provincial authorities.

At the time of independence there was no time for any sort of innovation in the field of innovation. Thus an organization with the name of "Pakistan Savings Central Bureau" was created and the Saving work was entrusted to it by the Government of Pakistan, but this Bureau had its own peculiarities. The Pakistan Savings Central Bureau had no independent entity and was nou given the same status as enjoyed by Savings Bureau, Simla. The head of the Pakistan Savings Central Bureau was then called Central National Savings Officer, a junior officer of the ministry of finance with the status of an under secretary to the Government of Pakistan. He was assisted by a Superintendent having some auxiliary staff.

In 1953, the Pakistan Savings Control Bureau was re-named as Central Directorate of National Savings and it carried out the functions on the lines of National Savings Bureau Simla but as a part and parcel of the finance division, Central Directorate of the National Savings was only responsible for publicity , and the operative agents were the provincial Governments as well as Pakistan post offices. However, the entire expenditure in this regard was borne by the central Government. Such an arrangement created a large number of administrative difficulties and stunted the growth of savings.

In view of these difficulties the central Directorate of National savings was given the status of an attached Department in September . 1960, and was made responsible for all policy matters and execution of various National Savings Schemes. Subsequently, it was also declared a technical Department by the Government. The Director General, National Savings (BPS-20) now enjoys full power of the head of the department. Till December, 1971, National Savings Organization functions as a publicity organization and its activities were merely promotional in nature, bit in early ,1972, the scope of its activities was enlarged as the Central Directorate started selling 2-rupee prize bonds, and subsequently engaged in the operations of other savings schemes.

This resulted in considerable expansion of the National Savings Organization. At present, this organization has a total sanctioned strength of 3365 employees in various grades and its main component units are as under:-

Central Directorate of National Savings, Islamabad

Directorate of inspection and Accounts, Islamabad

Training Institute of National Savings Islamabad along with sub training institute at Karachi

12 Regional Directorates (Located at Peshawar, Abbottavad, Rawalpindi, Gujranwala, Lahore, Faisalabad, Multan, Bahawalpur, Sukkhar, Hyderabad, Karache, Quetta)

366 National Savings Centers scattered all over the country


A saving department existed in our part of south Asia prior to emergence of independent state of Pakistan in 1947. the history of the British Government introduced several devices to collect funds to meet war requirements. In 1960, Central Directorate of National Savings was made on attached department of the ministry of finance and assigned to assists in policy formation and implementation in order to promote domestic savings.

Till 1971 the activities of the National Savings Department use mostly promotional net wise publicity and execution of various savings schemes. The savings instrument drawn to attract domestic savings use operated through agents, i.e. post offices and banks. It was however in the financial year 1972-1973 that the central directorates of national savings(C.D.N.S) embarked upon selling the savings instruments directly through it are newly established with work of national savings centers through out the country. As on May 1999 these use 366 branches in the country providing exclusive services to our investors.(12 regional directors - 13 treasures 7 ZIAO)


Budgetary support to the Pakistan

Control inflation

Raise standard of living og the people

Raise standard of lining of the people

To made the payments of domestic & foreign loans


National Savings is attached to ministry of finance. In national savings 12 regional directorates and 367 national savings centers. In national savings training institute is situated at Islamabad and sub-training institute is situated at Karachi. The investment is more save when we compared to all banks.

The target of National Savings in year 2001 to 2002 is twenty seven thousand three hundred millions. But revised target is 36 thousand seven millions. This target is completed for one tear gut national savings is completed before two month.

The national savings all investments (money) give governments. The work of national savings just for sale the schemes (rate of interest more type of schemes). All schemes (certificates) can be easily converted in to liquidity. All certificates are easily transferable one city to another city (every thing is same benefit is same, certificates it without any charges).


Bands easily give a loan against through pledge of these certificates zakat and tax including this. If the investment of investor is more than 150000 than 10% is deducted on profit as with holding tax. If these certificates are misplaced may burn or stolen then duplicate of certificate issued which have no effect on profit. The process of issue of duplicate copy takes at least one month. National savings offer nine schemes

Defense saving certificates

special saving certificates

Regular income certificates

Bahbood savings certificates

Savings accounts

Pensioner.s benefit account

Mahanna amadni account

Special saving account

National prize bonds

The national savings organization is represented by central directorate of national savings which is attached with the department of the ministry of finance, Its functions are as under:-

To publicize the National Savings schemes

To mop up the saved amounts through its field network of 367 national savings centers

To keep liaison with the other selling agencies i.e. Pakistan post offices and the bands

To assist the ministry of finance in policy formation

the central directorate of national savings is headed by director general who is responsible for the performance of 12 field directorates and controlling 367 national savings center, one directorate of inspection and accounts having 7 zonal inspection, accounts. 12 regional accounts offices. 2 training institutes of national savings at Islamabad and Karachi.


Peshawar & Abotabad (ZIAO) Rawalpindi

Rawalpindi (ZIAO) Rawalpindi

Gujranwala & faisalabad Gujranwala

Lahore Lahore

Multan & Bahawalpur Multan

Sukkhar. Hyderabad & quetta Hyderabad

Karachi Karachi

Activities of NSC,S

Certificates Accounts Prizebonds


SSC (R) MMA Rs.750


BSC RS.7500



Objectives of national


Objectives of National Savings

Following are the purposes of the National Savings. Now. It is trying hard for accomplishment of this purpose for which it was formed, the major purpose are:-

collection of small savings

The main and basic purpose of national savings is to collect the small amounts of savings from lower class & middle class of the society of Pakistan. Because the amounts of savings in this segment of people are very low so they often try to avoid the investment o this amount. National savings prime purpose is to create confidence among these people and collect their small savings through its savings schemes.

1. Mobilization of idle savings

Mobilization of idle savings is necessary for the economic development of ant country. So Pakistan is trying to do so through National Savings, as said earlier, and to reinvest them in the required or desired segment/sector of economy.

Motivation towards saving

The objective or national savings is to create motivation towards savings among people of Pakistan. Now it is trying well for this objective. People are concentrating toward the schemes of national savings. National savings also launched many schemes for the attainment of this purpose like prize bonds, certificates etc.

Provide assistance to SBP

The other objective is to provide assistance to state band of Pakistan in-controlling the quantity of money in the country. Because ,suppose in inflationary conditions SBP has to launch securities and it feels eifficuoties to do so in the absence of national savings.

Establishment of a Savings Band

The last objective is to establish the savings bank in the country which has performed all saving function, no doubt other commercial banks were doing and trying their best to act as savings band but the speed of advancement was not satisfactory and people were not considering them.




There are various departments (sections ) of the organization, which are performing job in their respective field.

Administration section or human resource management.

Scheme diction

Treasury section

Drawing and disbursement section

Publicity section

There is also a separate independent department of national savings

Regional accounts office

There are various sections of national savings, performing theur activities relating to their requirements.


Administration section National Savings Officer

Scheme Section National Savings Officer Drawing and disbursement National Savings Officer

Publicity & store section National Savings Officer

RAO section National Savings Officer





Human resource management is the great asset for ant organization. This is off balance sheet precious asset. The personal of ant organization are the pillars of the success of that organization. The importance of human resource management keeps important place in the financial institution like banks and saving centers because these institutions requires great deal of expertise from its employees. National savings is the important financial institution under Govt. control. Due to its importance it requires high class personal.

Under this topic, we will discuss the procedure of managing the human resources in national savings. In details for the discussion of all aspect, we have classified this under following such headings











Now all the topics will be discussed in brief but in comprehensive way

Employees status

All these are civil servants. Civil servant act 1973, an act to regulate the appointment of person do. And the terms and conditions of services of persons in the service of Pakestan. (All central Govt employees) apply this act.

Employees discipline

Conduct rules 1964, civil employees are bound to Govt, conduct rules. When ant employ inefficient rule may be involve corruption.

Efficiency and Disciplinary Rule 1973

In this rule more protection for employees. In the new ordinance 2000, removal from services (special power) when ant person misconduct inefficiency, corruption.


Charge sheet 15 days one inquiry officer or inquiry committee. The corrupt person answers all these questions in written, in oral. Than any inquiry officer 30 days a report give authority (shoes appointing authority)

Minor penalty

Censure mean, just through warning.

With holding, for a specific period, promotion or increments

Stopped for a specified period, at any efficiency bar in the time scale, otherwise than for unfitness, to cross such far.

Recovery from pay of the whole or any part of any pecuniary loss cause to Govt by negligence or bread of orders.

Major penalty

Reduction to a lower post or time scale, or to a lower stage.

Compulsory retirement

Removal from service.(May be working other Govt. institutions)

Dismissal from service. (Not work any Govt. institute)

Appeal(final decision) 30 days appellant authority acquires appeal to higher and competent authority than decision appellant authority if not satisfy than Government service tribunal if not go time period than no appeal. If not satisfied this decision appeal goes to Supreme Court.

Employ leaves

Calendar year 20 casually vacation every holiday can not be claimed as a matter of authority.


One year earned than 48 leaves (A/C maintained)

Details of different centers

Total centers = 21

NSC 1 Ahmed pur (East)

NSC 2 Bahawal Nagar

NSC 3 Circular Road Bahawalpur

NSC 4 Commercial Area Branch Bahawalpur

NSC 5 Chishtian

NSC 6 Dhahran wala

NSC 7 Fortabas

NSC 8 Haroonabad

NSC 9 Hasilpur

NSC10 Khanpur

NSC11 Kahrorpacca

NSC12 Khairpur Tamawali

NSC13 Lodhran

NSC14 Liaquatpur

NSC15 Malsee

NSC16 Minchanabad

NSC17 Model Town Bahawalpur

NSC18 Rahim Yar Khan

NSC19 Sadiqabad

NSC20 Welcome chowk railway read Bahawalpur

NSC21 Yazman


Recruitment is very important step in the H.R management in the financial institution like National Savings. It requires a great deal of experience National Savings was adopting two methods for recruitment of employees up to last year.

How Recruitment is performed


Direct recruitment no promotion and qualification required is at least primary pass. Whose people are related to retire Army, Police, and any security department prefer these persons.

Machine operator

Direct recruitment


Direct recruitment but driving license is necessary

Lower division clerk (L.D.C)

Qualification required is at least metric and typing speed is 25 per second. The maximum age of person is 25 years. 10% promotion quota for gunman and 90% direct recruitment.

Upper division clerk

Qualification required is at least intermediate but typing is not necessary. 50% promotion quota for (L.D.C) and 50% direct recruitment.

Deputy National Savings Officer

No recruitment, 100% promotion quota.

National Savings Officer Grade 16

50% quota of (D.N.S), and 50% direct recruitment, qualification required is at least M.A Economics, Statistics, commerce,(2nd division at least) through PSC (Public Service Commission).

Assistant Director

50% reserve for promotion and 50% direct recruitment through (PSC), the qualification required is at least M.A economics, statistics, commerce, (First division)

Joint director

100% promotion quota.


When age of any of person is completed 60 years then this person is retired from the job. But if any person wants retirement before 60 years he can take retirement. If ant person's service is completed for 25 years he wants to be voluntarily retired they request the institution and easily get the retirement.

During job a person may be serve ill/accident on the basis of medical ground they easily get the retirement (no age limit in this situation). If the Government service is completed for 10 years then the person avail all facilities but if the Govr service are not completed for 10 years than the person is not elliganl to avail all facilities. We can calculate the pension by this formula

Pension = last pay down*lengeh of the service*7/300

Length of service=date of joining years-date of retirement years.

Then the answer is the gross pension.

Pension = half the gross pension*12*commutation factor

Suuppose the gross pension is 9000 then we calculate the net pension



Training is the process of the refinement of abilities of the employee. National Savings uses two methods of training for its employees so that they can face the challenges of modern techniques. These methods are:

Initial Training

Route Training

Initial Training

This method of training is used for those employees who are directly recruited in the office of the National Savings. So after selection, they are given training in the training center. National savings has training institute in Islamabad and a sub training institute in Karachi.

Routine training

This type of training is given to employed workers who are already working in national savings. National savings offers two kinds of this training:

Training in Pakistan includes the training through regular courses, refresher courses that are of short term in nature in the training institute at Islamabad.

The directorate of national savings also arranges training in abroad.


For the evaluation of the employees, a directorate of inspection and accounts is established in national savings. This directorate is situated in Islamabad and works 7 zonal inspections offices and 12 regional account office. These zonal and regional audit offices arranges for the surprise visit of internal auditors. These auditors check the branch working, performance branch working position is the mirror of working abilities of its employees/worker. The promotion is widely based upon the working efficiency of the workers. The worker who is more efficient in his job gets promotion accordingly. The employees get promotions, ,moreover, selection grades according to their performance.

Incentives for Motivation

No doubt, National savings is the Govt institution it has to adopt the financial rules and regulations of Govt. regarding financial compensation but for the motivation of it employees, it is giving incentives like money rewards to them along with the pay package according to their performance.



Scheme section is divided in to two sub section.

Professional accounts

Aannotation accounts/audit and inspection accounts

All the 21 centers send their monthly summarized accounts to the scheme section, then after receiving from centers the region send all these accounts to central directorate after verification.

Professional accounts

In professional accounts first of all every work done in center than given a monthly report and a summarized report, attached different documents at the date of 30 to 31 and than send to the directorate and further processes occur in this section. This section complies this report and read every account and ever y thing than check all accounts are same (match) and all figures than this report is sent to central directorates.

In professional accounts following reports are maintained

NS-9A Daily Report

NS-7 Consolidated statement

NS-10 Consolidated monthly accounts

Annotation Accounts/Audit & Inspection Accounts

Daily works in audit and inspection section is budget preparation by directorate of in section account and than answer to director general. In audit every thing/every work is checked properly. All work examined properly than accounts made and maintain and point out all irregularities and mistakes and then report is send to zonal inspection accounts. In all reports process in scheme section, when the daily report is completed at the end of every month the progressive balance is taken from this report and then is put in to the consolidated monthly accounts (NS-10) so this type of accounts are collected by all the centers of one region and then prepared the monthly consolidated statement, this statement is sent to the central directorate of national savings, Islamabad.


Treasury section

Function of National Savings Treasury

To receive cash, cheque uses and prize bonds from NSCs

To meet cash and prize bond requirement of NSC

To collect private and Govt cheques from NSCs for clearance and deposit.

To accept RAO cheques for payment.

To remit cash and cheques for deposit/collection in to state bank of Pakistan.

To issue Govt. cheques for drawing cash or for payment of third party.

To keep stock of blank deposit/savings certificates.

Safe custody of valuable documents or articles under the direction of joint director.




This section is working only in the regional directorate of national savings and is controlling all the centers of the concerned regions like in Bahawalpur region this section is controlling 21 centers and regional office.

All payments such as pay & allowances, T.A, etc. of the officers and staff in the national savings organization, including contingent expenditure are made by the regional accounts officer through the respective directorate in whose area the claim arises. This section sanctions the expanses of all the centers including regional offices. The ministry of finance gives funds to this national savings, so this section distribute the funds to this section through new item statement o annual basis for the expenses of national savings, so this section distributes the funds to centers according to their performance. The expenses may be for the:

Purchase of disposable goods


Machinery & equipment

Furniture and fixtures


Repairs and maintainance of durable goods and work

Commodities and services

Transport of goods (Freight cartage coolly charges)

P.O.L charges aeroplane, helicopter. Staff cars. Motorcycle,etc.

Conveyance charges



Telegraph, Telephone and Trunk call

Telex and Teleprompter

Courier and pilot service





Hot and cold water charges

Office stationery



Periodicals and books

Uniform and liveries

Rent royalties

Rates and taxes

This section is also dealing with the pay bills of the employees of the national savings, various allowances are calculated by this section for the employees of the national savings as like house rent allowance, conveyance allowance, dearness allowance, washing allowance, overtime allowance, medical charges, rest and recreational allowances. In addition to these allowances this section is also deducting various deductions as like benevolent fund, general provident fund, postal life insurance, income tax, trade tax, house building advance, motor cycle advance, house rent etc.

This section is dealing with expenses of the office and employees of this department, now we are concerned with the proper way to give connection for the bill of expenses to the employees and offices of this department. All this procedure is done through various sorts of forms like T.R 30, T.R 16,T.R 31, T.R 22, T.R 25< T.R 20, and pension papers etc. through these sorts of forms have various heads of allowances and deductions of pay as like:

T.R 20

This form is used to show the traveling allowances of the gazette officers.

T.R 25

This form is also used for the traveling allowances of employees but for non-gazettes.

T.R 22

This form is also used for the non-gazetted employees in this form the allowances and deductions are recorded.

T.R 16

This is a pay bol of the gazetted officers and shows all the allowance and deductions.

T.R 31

In this form the expenses of the officers are recorded, the expenses are taken over by the form T.R 30.

Pension papers

This booklet is used to give the gratuity to employees on the retirement of employees.

This is the separate independent of national savings. This department does mainly the pre audit.




In the publicity of schemes agencies are involved, because national savings are not paying any reward to them. After the publicity schemes the paper owner send bill along with tear sheet to concerned advertising agent. The budget for advertisement is about 15 million, (Overall publicity). Payment for publicity is made by cheques.

Government rate for Government institution

Government commercial rates for banks

Government rate for private banks

Electronic media

In NSC Govt. rates are applicable. The add time in PTV is minimum 7 seconds. If in ordinary time (any time) the the fate of the advertisement of 7 seconds is approximately 45000, in fixed time (prime time & specified time) its rate becomes 200% extra and in news time it becomes 400% extra. The rate of PTV World is comparatively less than PTV.

Procedure for selection of advertisement agency

Procedure for selection of advertisement is that NSC makes a competition call and distribute the schemes to those agencies for preparing camping. Then NSC has has to select campaigns keeping in view various aspects like:-

Short listing

Selection of advertising agency

Board of selecting agency

Fixing of date of final selection should call at least 10 agencies, than these campaigns will be exhibited, then director of each agency will explain its campaign for removing fraud the title of the agency will be hidden on campaign.

More than aware agency can be selected

Transfer or sending to press paper.

Minister (issue of appointment letter).


Budget verification (advertisement, printing charges, local publicity, press & media).

Final approval from competent authority.

Selection of newspaper. (considering holidays).

Issue of release order will send to press information department.

Instructions, about the size of the advertisement, wording page is also given.

PID (press information department) will give a copy of its approval to NSC and other.

Rates are fixed by press information department.

Procedure of foreign media

External publicity wing, we send our requirements , add, page. Size, color, length, importance is send to external publicity wing(EPW) observe that either add should or not place in our media. (EPW) also check that weather we have NOC or not or weather we have bill or approval for pointing.



Regional accounts office:

As the district accounts office of any district is performing its job for the passing of the bills of the Govt. offices, as like this the ministry of finance has decided to situate accounts offices in the national savings for the convenient of the employees of this organization. So every bill or cheque of this organization is send to regional accounts office for pre-audit.

Drawing & disbursement section send all types of bills as like employees pay, house rent allowance, medical allowance for pre-audit and clearance. So in short this office is performing the following functions.

After departmentalization of accounts the claims of pay/allowances, payments of contingencies etc, are being honored / processed by regional accounts offices attached with each regional directorate of national savings in the manner.

Main functions of R.A.O

R.A.O's were established in 1978.

To disburse pay of offices and establishment gazzeted officers grade 16 and above separately submitted.

RAO is just like cash,.

All monthly expenditure statement is prepared by RAO.

All claims presented by RDNS (DDO) traveling allowances, contingencies.

All reconciliation with national savings treasury.

Reimbursement of medical charges.

The RAO reconciles the amount authorized by him to be drawn from local national savings treasury on monthly basis.

The remittances into and withdrawal from Government accounts are consolidation by the national savings treasury under the administrative control of each directorate.

Every treasury and every national savings center has to submit their accounts to the respective regional directorate of national savings where the same are consolidated and submitted to the respective regional accounts office, shere the same are further consolidated by inserting the figures of expenditures and then submitted to the accounts general concerned.

All service record of officers is maintained at regional accounts office and provide funds accounts (except of grade 1-2) are maintained and pension cases are processed by him in respect of all officers and staff.