Roshan Digital Account: Ready for a changing world

Ahmed Ali should be a happy man. He’s just secured a promotion at the software house that he’s worked hard for, his colleagues look up to him and he’s finally upgraded to a two bed apartment in Sharjah.

But he’s a bit worried.
His younger sister’s wedding is around the corner and he needs to get his
savings home to Gujrat in Pakistan fast. Since his father recently retired from
his teaching job, he needs to help with the expense of his sister’s marriage.

Ahmed faces a problem
common to many. Every year, Pakistanis send around $4.6 billion in remittances
from the UAE alone through formal and informal channels. The use of informal
fund transfers through the hawala/hundi system is particularly insecure. This
system of brokers bypasses formal financial and banking channels and can be unreliable.
Transactions can often be delayed with payments not made in full or even get lost
during transmission.

Because of all these
issues, the State Bank of Pakistan (SBP) strongly discourages the use of such
hawala/hundi brokers.

Help comes from an unexpected
quarter. A friend listening to Ahmed’s dilemma relates to the problem instantly,
“You know what? I needed to send some money back to Pakistan, quick and easy. I
registered for the Roshan Digital Account. It’s so simple. Best of all, it all
gets done online and receiver doesn’t even need to visit a bank branch in
Pakistan.”

The Roshan Digital
Account (RDA) is exactly what Ahmed has been looking for. Designed by the SBP in
partnership with eight commercial banks, the account facilitates and ensures
faster, cheaper, convenient and efficient remittances to Pakistan.

Signing up for RDA was concluded
before Ahmed could imagine. Completing a simple registration process on MCB
Bank’s Digital Account Portal, with a simple declaration and a minimum of
supporting documents, Ahmed is able to register for the RDA which is enabled
two days later.

Ahmed is then able to
easily transfer funds to his father’s account at MCB Bank, Circular Road Branch,
Gujrat from the comfort of his home without ever having to visit a bank or
foreign exchange company branch. His father receives a SMS confirming the transfer
on his mobile and proceeds to make several urgent payments.

Later, Ahmed realizes
another great benefit linked to the RDA. Basit, Ahmed’s cousin from the US, has
been using his RDA to purchase Naya Pakistan Certificates (NPC). At a time when
interest rates are close to zero in the US and most of Europe, Basit has
invested $10,000 in NPCs and expects profit of $2,000 within three years.

These
saving certificates are issued by Government of Pakistan in both foreign and
local currency and yield excellent returns. NPCs provide very attractive risk
free rates and available in both Pakistan Rupee (PKR) and Us Dollar (USD) denomination.
Furthermore, there is no requirement for submission of income tax return
filings in Pakistan for Non Resident Pakistanis (NRP) in respect of profit
earned on these certificates. A Shariah compliant version is also available.

Both
Pakistan and NRPs like Ahmed stand to gain with such initiatives. It is with
the joint efforts of the government, the banking sector and other important
stakeholders that a strong foundation is being built for a Pakistan that is
ready and able to keep pace with a changing world and its dynamics.

Article source: https://www.samaa.tv/sponsored-content/2020/12/roshan-digital-account-ready-for-a-changing-world/