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Bank & Finance - August 2, 2022

Savings certificate sales fall short 62pc of target in FY21-22

Industry Desk: The amount of debt through government savings certificates has been reduced by Tk19,915.75 crore in the last fiscal 2021-22 which is 62.23% of the target set for the sector to meet the budget deficit.
The net debt target from this sector was Tk32,000crore in the last fiscal.
The government also paid Tk40,002.69 crore to savings bond customers as profit or interest during the same period, according to the latest report of the Directorate of National Savings published yesterday.
In the last fiscal year (July-June), the government collected Tk1,08,070crore through the sales of savings certificates.
However, previous loans and profits have been paid to the tune of Tk 88,155 crores.
According to the sector insiders, the new rule of showing income tax return certificate to get savings certificates worth over Tk5 lakh and provision of imprisonment and fine if the documents are not produced has brought down the investment.
In the fiscal year 2020-21, the government took a loan of Tk42,000 crores by selling savings certificates, which was Tk14,428crore in fiscal 2019-2020.
The Bangladesh Bank made it mandatory to show proof of last year’s income tax return for investment in savings certificates worth more than Tk5 lakh last month.
In addition, income tax return documents were made mandatory to open accounts of more than Tk5 lakh in Bangladesh Post Office Savings Bank.
According to the Directorate of National Savings Certificate and government gazette, the Bangladesh Bank directed the banks to take necessary measures for proper compliance with the Section 48 of the Finance Act, 2022 for investments over Tk5 lakh as Savings Certificate and in Post Office Savings Banks.

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