Bangladesh set purchase limit for savings tools

New Age

Govt scraps CIP status for bond investors

Staff Correspondent |Dec 03,2020

The government on Thursday set the upper limit of purchase of three types of national savings certificates at Tk 50 lakh in total in single name and Tk 1 crore in joint names to reduce the burden of costly public borrowing and support the country’s banking system in lowering the interest rate.

Previously, people could buy savings certificates — five-year Bangladesh sanchayapatra, three-month profit-based sanchayapatra and the paribar sanchayapatra — worth Tk 1.05 crore in single name and Tk 1.20 crore in joint name.

The government also set the maximum purchase limit for three types of savings bonds at Tk 1 crore in total, lowering from previous Tk 24 crore.

It also scrapped the provision of Commercially Important Person award given to expatriate and non-resident Bangladeshi investors on their investment in the savings bonds — The Wage-Earner Development Bond, The US Dollar Premium Bond and US Dollar Investment Bond.

The Department of National Savings introduced wage earners development bond in 1981, the US premium dollar bond in 2002 and US dollar investment bond in 2002 for expatriate Bangladeshis.

Internal Resources Division of the finance ministry issued three separate gazette notifications in this connection on Thursday.

The new limits came into effect immediately, according to the gazettes.

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

People were allowed to purchase Bangladesh sanchayaparta up to Tk 60 lakh and 3-month profit-based sanchayapatra up to Tk 60 lakh in joint names.

The government would honour expatriate investors with CIP status for investment worth Tk 8 crore or above in 5-year wage earners development bond and $ 1 million each in US premium dollar bond and US dollar investment bond.

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