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Government to halve savings certificate purchase limit

Staff Correspondent | Published: 00:38, Oct 20,2020

 
 

The government has decided to limit purchase of three types of national savings certificates by an individual at up to Tk 50 lakh in total, officials said.

The savings certificates are the five-year Bangladesh sanchayapatra, three-month profit-based sanchayapatra and the paribar sanchayapatra.

An individual can now buy the three types of savings certificates worth up to Tk 1.05 crore in total.

An investor can buy the Bangladesh sanchayaparta worth up to Tk 30 lakh, 3-month profit-based sanchayapatra up to Tk 30 lakh and paribar sanchayapatra worth up to Tk 45 lakh.

The Finance Division has already asked the National Savings Directorate under the Internal Resources Division to carry out the government decision taken in the past month setting new limit.

NSD joint director Md Shah Alam on Sunday said that they were preparing fresh guidelines on the savings certificates by incorporating the latest decision.

He expected that the guidelines would be made public soon.

Finance Division officials said that the NSD was also asked to introduce cap on sales of three types of savings bonds at Tk 1 crore.

The NSD introduced wage earners development bond in 1981, US premium dollar bond in 2002 and US dollar investment bond in 2002 for expatriate Bangladeshis.

According to NSD officials, the government identified clients purchasing 5-year wage earners development bond worth Tk 80 million or more as commercially important persons.

The government also treats investors purchasing US premium dollar bond and US dollar investment bond worth over $1 million as CIPs.

The NSD officials said that the decisions to set new limits were part of a series of measures to discourage savings certificates sales as they became costly borrowing for the government.

Earlier, the government made taxpayers’ identification number mandatory for buying savings certificates.

In financial year 2019-20, the government borrowed Tk 14,428 crore by selling savings certificates.

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