Though the savings certificates used to be sold unconditionally, from now on one has to disclose one's source of income while purchasing savings tools. According to new rules, savings certificates could no longer be under joint names.
The National Savings Directorate (NSD) has recommended the issues in the draft National Savings Scheme Policy (Amendment) submitted to Finance Ministry.
NSD Director General Babul Kumar Saha said, "The provision of unconditional investment will be withdrawn. Because, it is mandatory to know the sources of income based on which one is investing in savings tools. Since the profit from the investment in savings certificates is comparatively handsome, we recommended stopping unconditional investment to ensure transparency in its funding."
In the proposed amendment policy it is suggested that the maximum range of investment be dropped to Tk 25 lakh against each savings tool scheme. But, the NSD is not supporting to change the interest rates on pension savings tools. It is also mulling of rejecting joint investment and introducing single investment in each scheme.
Sources said many people are investing jointly and individually at the same time. Many commercial firms are investing using both valid and invalid names aiming to make a higher profit, though there are 13 sectors of savings instruments to invest. A lack of monitoring is pushing up the government loans.
Some companies bought savings tools worth Tk2,500 crore in ten months of the current fiscal year, which is supposed to exceed Tk 4,500 crore at the end of the year. Considering the situation, the NSD recommended that investment by all commercial firms be stopped.
The government is currently allowing the purchase of savings certificates for underage children. But, the proposed policy is against the provision as the NSD wants it stopped.
In the draft policy it is also recommended that the profit in the family savings certificates worth up to Tk 5 lakh be raised further to help ensure social and economic security of the female disabled and the elderly. The NSD is also in favour of introducing digitisation to get information about the investors.
Babul also said they are being even stricter in terms of investing for savings tools.
"We are taking multifarious measures to halt the upward trend in savings certificates. But, the government will make sure that the low income people benefit from the savings instruments," he added.
Policy Research Institute Executive Director Dr Ahsan H Mansur said the government's pledge of providing the people with economic security through the sales of savings tools is actually increasing economic risks.
"This is because the government's responsibility is also increasing. Hence, there must be a way out in the national budget to help ensure economic security of the pentioneers and low income groups. The government must control the sales volume adjusting the interest rates," he suggested.