New products

SBP plans to introduce new products under RDA

KARACHI: The State Bank of Pakistan said on Friday that it plans to expand product offerings under Roshan Digital Account (RDA) due to growing demand from non-resident Pakistanis (NRPs).

“Based on the feedback from NRPs, we are further increasing RDA products by introducing ‘Sunwai’ complaint management system, insurance products, pension plans and Roshan business account in the near future,” said Ali Raza Syed, Co-Senior Director of SBP in a podcast.

The central bank also said reports of large RDA outflows are not true.

“The fear that there have been major RDA releases is very misleading and far from reality,” Syed said. “There were some outflows, however, these were due to the maturing of investments in Naya Pakistan Certificates (NPC) which started in early 2021 and the repatriation of these funds is a key feature of RDA around which the product was designed to gain trust in the public.”

Another reason for outflows is an increase in inflation due to which people access their savings to make ends meet. In the past 23 months, only $800 million has been repatriated, Syed said.

“The RDA has legal cover under the ‘Foreign Currency Deposits Protection Ordinance 2001’ and the State Bank of Pakistan is also firmly maintaining its RDA initiative. It is here to stay.

As of June 2022, approximately 429,364 digital accounts have been opened with an inflow of $4.6 billion, of which $2.9 billion has been invested in NPC. The Roshan Apni car was also very successful with 1,550 cars delivered and total funding of R8 billion.

Syed said that the total inflows through RDA do not remain in the accounts but are invested in RDA products increased or consumed in Pakistan. Approximately, only 500 million dollars remain in the accounts.