DMD Circular Letter No. 15: Regarding Clarifications about the Revised Policies of National Savings Schemes

50119

Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh.

Debt Management Department

04 Poush, 1431 Date: ------------------- 19 December, 2024

DMD Circular Letter No.-15

Managing Director/Chief Executive Officer All Scheduled Banks Operating in Bangladesh (Excluding Shariah-based Banks)

Dear Sir,

Regarding Clarifications on the Revised Policies of the National Savings Scheme.

Reference is drawn to the DMD Circular Letter No.-13/2024 issued by this department on 06 November, 2024, regarding the notification of the Department of Internal Resources, Ministry of Finance, Government of the People's Republic of Bangladesh, dated 03 November, 2024, bearing number 08.00.0000.041.22.007.20.35, concerning the revision of policies for the National Savings Scheme administered by the Directorate of National Savings.

2. The revised policies of the National Savings Scheme through the aforementioned notification were sent to you for your information and necessary action.

3. Now, the minutes of the meeting of the Department of Internal Resources dated 18 November, 2024, regarding clarifications on the aforementioned revised policies are being sent herewith for your information and necessary action.

Yours faithfully,

(Signature) (Intekmal Hossain) Director (DMD) Phone: 9530131

Enclosure: As described.

Phone: 88-02-9550448, 9554896, IP: 88-02-55665001-6, Fax: 88-02-9530479, www.bb.org.bd

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Government of the People's Republic of Bangladesh Ministry of Finance Department of Internal Resources Savings Branch www.ird.gov.bd

Bangladesh Bank Head Office, Dhaka. Debt Management Department Director (DMD) 04 DEC 2024 Additional Director-1. 2. 3. 4. 5 System Generated No: 3044

Minutes of the meeting regarding necessary clarifications on the notification issued by the Department of Internal Resources, Ministry of Finance on 03-11-2024.

Chairperson	Md. Abdur Rahman Khan, FCMA, Secretary
Date of Meeting	18-11-2024
Time of Meeting	11:00 AM
Venue	Room No-240, Department of Internal Resources.
Attendance	Appendix-'A'

The Chairperson welcomed all present and started the meeting proceedings. With the permission of the Chairperson, the Joint Secretary (Savings) of the Department of Internal Resources informed the meeting that clarifications are needed for the notification issued on 03.11.2024. In this context, he requested Mr. Muhammad Mizanur Rahman, Senior Advisor of SPFMS, to present the issues arising in the online setup, as changes are required in the online system.

Discussion Topic-1: Interpretation of the Notification Issued Regarding 'National Savings Scheme' and Incorporation into the Online System

In light of the aforementioned subject, detailed discussions were held in the meeting, and the following decisions were taken:

Decisions:

1.1 Investors in the case of Family Savings Certificate, Pensioner Savings Certificate, 3-monthly profit-based Savings Certificate, and Post Office Savings Bank Term Account, along with 5-year maturity Bangladesh Savings Certificate, will be able to avail the reinvestment facility up to the upper limit of investment for life. However, those 3-monthly profit-based Savings Certificates; Family Savings Certificates, and Pensioner Savings Certificates that mature on or after 01-11-2024 (including manual ones) will be eligible for the reinvestment facility. For each reinvestment, the customer's consent must be obtained online or physically. In the case of exceeding the upper limit of investment, the reinvestment facility will be available up to the upper limit; and the amount exceeding the upper limit will be automatically sent to the customer's bank account. In this context, a new Interface will be launched under the 'Self-Service Module' formulated under the 'National Savings Scheme Online Management System'. Under this Interface, investors can apply for reinvestment online using User ID and Password. At the same time, if the investor deems necessary, they can also submit a reinvestment application by appearing physically at any issuing office.

1.2 In the case of bonds issued manually, the reinvestment facility will be available for the same maturity period as the Wage Earner Development Bond, US Dollar Premium Bond, and US Dollar Investment Bond issued under the 'National Savings Scheme Online Management System'. In this regard, the customer's consent must be obtained online or physically for each reinvestment.

1.3 In applicable cases, investors must compulsorily submit Proof of Submission of Return (for tax return filing). Otherwise, the reinvestment facility will not be available. Investors will submit the Proof of Submission of Return online using the new Interface under the 'Self-Service Module' formulated under the 'National Savings Scheme Online Management System'. At the same time, investors can also submit the Proof of Submission of Return by appearing physically at any issuing office. An Application Programming Interface (API) of the 'National Savings Scheme Online Management System' must be prepared with the National Board of Revenue for tax verification.

1.4 The profit rate and slab applicable on the date of reinvestment will apply during reinvestment.

1.5 In the case of investment in joint-name Savings Schemes, the amount of joint investment will be determined considering the limit applicable to the investor whose investment limit is at the maximum amount.

1.6 All Pensioner Savings issued under the 'National Savings Scheme Online Management System' will be paid profit on a monthly basis instead of quarterly from 01-12-2024 or thereafter.

1.7 Reinvestment with profit will fall under the reinvestment facility after deducting tax at source.

1.8 The nominee or heir of a deceased person will not be eligible for the reinvestment facility.

1.9 The old number/registration number will be used on the reinvested Savings Certificate.

1.10 The reinvestment facility will remain active automatically even on holidays.

1.11 Schemes that are lying or frozen will not be eligible for the reinvestment facility.

Discussion Topic-2: Miscellaneous

After discussion on other matters, the following decisions were taken:

Decision:

2.1 In the case of changing bank accounts, the Maker and Reviewer will be the issuing office, and the superior office of the issuing office will be the Approver. The information of the bank account of the investor person or institution in National Savings can be corrected with the coordination of these three users.

2.2 Except for US Dollar Premium Bond and US Dollar Investment Bond, it is mentioned in the rules regarding other Savings Certificates including cashable Wage Earner Development Bonds after 5 years. In this context, the rules regarding the destruction of cashable US Dollar Premium Bond and US Dollar Investment Bond must be added to the relevant rules based on the recommendation of the Directorate of Savings.

3. As there was no other agenda in the meeting, the Chairperson thanked everyone present and declared the meeting closed.

(Signature) 28-11-2024 Md. Abdur Rahman Khan, FCMA Secretary

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Date: 13 Agrahayan 1431 Bangabda 28 November 2024 AD

Number: 08.00.0000.041.22.008.20.149

Distribution (in order of seniority):

1. Governor, Bangladesh Bank.
2. Secretary, Finance Division.
3. Secretary, Financial Institutions Division.
4. Director General of National Program (Additional Secretary), Strengthening Public Financial Management Program to Enable Service Delivery (SPFMS), Finance Division, Ministry of Finance, Dhaka.
5. Director General, Directorate of National Savings, Dhaka.
6. Personal Secretary to the Secretary, Department of Internal Resources.
7. Personal Officer of Joint Secretary (Savings), Department of Internal Resources, Dhaka.

(Signature) 01-12-2024 Mahima Begum Deputy Secretary