The federal government has proposed closing or merging 111 National Savings centres after declaring them inefficient and financially unsustainable. The step is part of a plan to rationalise the organisation’s branch network.
National Savings has issued a notification under which the number of centres will fall from 374 to 263. The notification sets an operational expenditure benchmark of Rs2,500 for every Rs1 million in deposits.
The 111 centres have been directed to prepare practical plans to either cut operating costs or increase business and deposits. Relocating inefficient centres to areas with greater business and investment potential is also under consideration.
If a centre is relocated, regional directorates must submit business and relocation plans within 15 days. If a centre is closed, details of all employees posted there, including their residential locations and preferred alternative postings, must be provided.
The Central Directorate of National Savings is a state-owned savings bank. It operates as an attached department under the Finance Division of the Ministry of Finance and is headed by a director general. It raises funds from individual savers to help finance the government’s fiscal deficit through non-bank means.
