Postal financial savings schemes go digital
The government yesterday initiated the automation of ordinary and fixed deposit accounts under POSTOFFICE Savings Bank to ensure transparency and prevent affluent people from abusing the high interest-bearing tools suitable for marginal and low-income groups.
"I don't prefer the businessmen to take advantage of it. Only the targeted beneficiaries will receive the benefit," said Financing Minister AHM Mustafa Kamal while inaugurating the web-based database at a programme placed at the secretariat in Dhaka.
The automation, that may allow people to open accounts and deposit and withdraw funds rapidly, will remove the misuse of the benefit beneath the existing system, he said.
The database could keep in balance the investment within the limit in addition to ensure the transparency of the funds, said the finance division in a news release.
The automation will be completed by March 17, the minister said at the programme.
The government has recently automated four types of popular savings schemes: five-year tenure Bangladesh savings scheme, three-month interest-based savings scheme, family savings scheme and pensioner savings scheme.
They are being sold at 1,659 branches under banks, post office buildings and the Department of National Savings (DNS), the press release said.
Now, the ordinary and set deposit accounts are place to go surfing under a program of the financing division.
Last month, the finance ministry slashed the interest rates on the three-year tenure set deposit in postal financial savings banks to 6 per cent from 11.28 % and ordinary deposit to 4.5 %, a move that sparked outcry from various quarters.
There are a lot more than 50 lakh deposit accounts beneath the postal bank and marginal and low income persons from rural and suburban areas mainly park funds there.
The government will restore the prior interest on fixed and ordinary savings scheme by March 17, Kamal said.
"The government won't cut the benefit -- it could remain unchanged," he explained, adding that benefits will be increased in some instances and the ceiling of deposits will go up.
The submission of tax identification number and the national identification number will be needed while depositing a lot more than Tk 2 lakh.
The finance ministry reduced the interest rate amid a mad dash from a portion of wealthy people to open accounts in postal savings bank to deposit money following the government tightened rules on investment in the huge interest-bearing countrywide savings certificates.
The government move targeted at preventing the abuse of the power distributed by the state to pensioners and middle-income families.
The instruments carry interest levels as high as 11.76 %, which is way greater than what banks offer.
Due to this fact, fixed deposits in postal keeping bank soared 66 % year-on-year to Tk 11,730 crore in the first of all half of the fiscal calendar year, according to info from the Bangladesh Post Office.
As well, investment in cost savings certificates sold by content offices plummeted 88 per cent to Tk 1,870 crore.
The ceiling for the best investment in savings certificates doubled to Tk 50 lakh for individuals and Tk 1 crore under joint labels. The purchase ceiling for pensioner cost savings certificates will dual to Tk 1 crore.
The deposits at the Post Office Savings Bank were greater than a fifth of Tk 83,630 crore of investment made by people in various types of cost savings certificates, bonds and federal government schemes in fiscal 2018-19, DNS info showed.
The deposits accounted for 14 % of the government's accumulated liabilities by June 30 this past year.
Posts and Telecommunications Minister Mustafa Jabbar and Finance Secretary Abdur Rouf Talukder also addressed the program.
