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2009-10-15

Added 2026-08-12 · Updated 2026-08-14

DMD Circular: Clarification of 'Note' of Rule-21 on Re-investment according to the Sanchaypatra Rules, 1977 (Amended up to 30 June, 2002)

The Ministry of Finance clarifies that only 5-year maturity Bangladesh Savings Certificates are eligible for automatic re-investment without a new application. This provision applies to certificates maturing on or after August 10, 2005, where the principal and profit were not cashed out, and requires duplicate certificates to be issued for lost documents based on the original principal. Banks are exempt from submitting re-investment details to the Bangladesh Bank or collecting new customer photographs and signatures, and no additional commission is payable for these re-investments.

Bangladesh

Bangladesh Bank

Ministry of Finance Department of Financial Institutions Circular No. 1000

Department of Financial Institutions Banking Regulation Department Circular No. DMD/Sanchaypatra-04/2009-12 Date: 15/10/2009

To The Chief Executive All Scheduled Banks of Bangladesh

Dear Sir,

Subject: Clarification regarding re-investment according to the 'Note' of Rule-21 of the Savings Certificate Rules, 1977 (Amended up to 30 June, 2002).

In this regard, the Ministry of Finance, Ministry of the Government of the People's Republic of Bangladesh, Department of Internal Resources, has clarified certain issues raised on the Notification No. Am/Asbi/Sanchay/Es-08/2002/190 issued by the Department of Internal Resources on 10.08.2005, with a view to creating opportunities for automatic re-investment in the Savings Certificate, in accordance with letter No. Am/Asbi/Sanchay/Es-08/2002/241 dated 13.10.2009 AD/28.06.1416 BD. This clarification is printed verbatim on the following page for your information and necessary action.

Please acknowledge receipt.

Yours faithfully,

Enclosure: As above.

(A.F.M. Shahinul Islam) Deputy Director Phone: 7126101-14/3273

Ministry of Finance Department of Financial Institutions Banking Regulation Department Circular No. 1000

Ministry of Finance Government of the People's Republic of Bangladesh Ministry of Finance Department of Internal Resources 13-10-2009 AD No. Am/Asbi/Sanchay/Es-08/2002/241 Date: ---------------------- 28-06-1416 BD

Subject: Clarification regarding re-investment according to the 'Note' of Rule-21 of the Savings Certificate Rules, 1977 (Amended up to 30 June, 2002).

Reference: Letter No. FRTRMD(PB)-4/2005-1878 dated 06-12-2005 AD of Bangladesh Bank.

In the context of the letter mentioned under Subject and Reference, the Department of Internal Resources has further amended Rule-21 of the Savings Certificate Rules, 1977 (Amended up to 30 June, 2002) on 10-08-2005, Notification No. Am/Asbi/Sanchay/Es-08/2002/190, to create opportunities for automatic re-investment in the Savings Certificate. Clarification is provided below regarding the issues raised by Bangladesh Bank on the aforementioned notification:

(a) Only 5-year maturity Bangladesh Savings Certificates will be automatically re-invested. Therefore, there is no need to apply anew.

(b) With a view to providing the facility of automatic re-investment in the Savings Certificate, regarding the issues raised by Bangladesh Bank on Notification No. Am/Asbi/Sanchay/Es-08/2002/190 issued by the Department of Internal Resources on 10-08-2005, which came into effect on 10-08-2005 AD or thereafter, the principal and profit of those 5-year maturity Bangladesh Savings Certificates whose maturity has passed but were not cashed out, shall be considered as re-invested. There is no opportunity for re-investment in the expired Savings Certificate scheme.

(d) If the Savings Certificate is lost after the re-investment period has elapsed, a duplicate Savings Certificate shall be issued only for the original amount.

(e) After re-investment at maturity with profit, if cashed out before the next maturity or at maturity, the interest rate applicable on the date of automatic re-investment shall apply. The calculation of profit for the re-investment shall be done in the same manner as the profit rate for 5-year maturity Bangladesh Savings Certificates is calculated. The profit amount of the first investment shall be considered as principal upon cashing out after re-investment, and government deposit accounts shall be adjusted accordingly.

(f) There is no need to send re-investment details to Bangladesh Bank. Since the re-invested amount or the previous amount has already been deposited in the government treasury and commission payable to banks has already been paid, there is no opportunity to pay commission anew. When cashing out the re-invested Savings Certificate, the description column must mention how many years after the first maturity was completed and at what rate profit was paid at the time of re-investment.

(g) In the case of re-investment, there is no need to collect the new holder's photograph, separate card, customer's specimen signature, and nominee's photograph and signature.

Signed/- 13/10/2009

(Dr. Md. Afzal Hossain) Under Secretary Phone No. 7168026