Govt to reform savings tools policy

The government has planned to bring reforms to savings tools so that the commoners get a relief amid high inflationary pressure on the economy, officials related to the development sector said.

The Internal Resources Division (IRD) under the Ministry of Finance formed a committee for drafting an integrated policy for savings tools with an open ceiling of investment for expatriates with dollars.

“The development is now at the initial stage. We want to do something better for the common savers amid inflationary pressure. We are hopeful to complete the task before next fiscal year,” Suraiya Parvin, joint secretary at IRD, said on Wednesday.

Parvin has been entrusted with developing the draft on savings certificates of three-monthly schemes, family savings and pensioner savings schemes.

Officials of the Ministry of Finance, National Board of Revenue (NBR), Department of National Savings (DNS) and Bangladesh Bank held a meeting in the first week of February.

DNS has made some proposals to IRD for bringing some amendments for attracting more investments in four savings certificates including documents, income tax, procedures of procurement, registrations and renewals are similar but interest rates and age limits of investors are different.

Therefore, the four schemes are going to be brought under an integrated policy. The Directorate of National Savings drafted a policy in Bengali and sent it to the IRD for approval.

Sources said the ceiling for buying wage earner development bond is being relaxed to attract expatriate investors and resolve dollar crunch in the country.

The Bangladesh Embassy in UAE and the Sonali Bank first proposed to hike the ceiling of wage earner development bonds to boost investment in savings certificates and to resolve the dollar crisis. The Ministry of Finance asked the IRD to take necessary initiative in this regard.

A survey shows that expatriates are willing to invest in the wage earners development bond for having 12 percent interest which is higher than any banks. They are willing to invest more, requiring the existing ceiling waived.

Under the new system, an expatriate will be able to buy wage earners development bond upto Tk 10 million. 

The officials of foreign missions will have scope for investing in the scheme. An investor can withdraw interest six monthly and can take loan against his savings.