The federal government is preparing to close or merge 111 National Savings centres that have been declared inefficient and financially unsustainable, potentially requiring customers to visit nearby centres for services.
According to a notification issued by National Savings, the number of National Savings centres across the country has been proposed to be reduced from 374 to 263. The move follows an assessment of the performance and financial position of the centres.
The notification sets an operational cost benchmark of Rs2,500 for every Rs1 million in deposits.
The 111 centres identified as inefficient have been directed to prepare action plans either to reduce their operating costs or improve their financial performance by increasing business activity and deposits.
Officials have also proposed relocating centres with limited business potential to areas offering greater opportunities for business and investment.
Possible impact on customers
If a centre is closed or merged with a nearby operational centre, customers who hold accounts, certificates or use other National Savings services there may have to visit an alternative centre in the future.
This could increase the distance to service centres for some customers, particularly those living in remote areas, potentially requiring additional travel for routine transactions and other services.
However, according to the notification, the objective of closing or relocating centres is to make the network more efficient. The affected centres have first been given an opportunity to submit plans for improving their performance. Therefore, the immediate closure of all 111 centres cannot yet be considered a final decision.
The notification states that if a decision is made to relocate a centre, the respective regional directorates will submit business and relocation plans within 15 days. In the event of a centre’s closure, details of employees posted there, their residential areas and preferred locations for alternative postings will also have to be provided.
The Central Directorate of National Savings is a government organisation working under the Finance Division of the Ministry of Finance. It mobilises savings from the public and plays a role in meeting the government’s financial requirements.