DMD Circular No. 09: Investment of Gratuity Fund of Financial Institutions in Sanchaypatro

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

Data Management Department
(Prize Bond, Savings Certificate and Securities Section)

Circular No. DMD-09/2014 Date: 22/12/2014

Managing Directors
All Financial Institutions of Bangladesh.

Dear Sir,

Regarding "Investment of Gratuity Fund in Savings Certificates".

In this regard, it is informed that, in accordance with the directives of the letter No. F-5(15)Jasp(Policy)/92(Part-1)/2542 dated 26/11/2014 of the National Savings Directorate, Department of Internal Resources, Ministry of Finance, Government of the People's Republic of Bangladesh, and letter No. 08.00.0000.037.00.003.97.175 dated 30/09/2014 of the Department of Internal Resources, Ministry of Finance, it was previously the case that, in accordance with Rule-5(5) of the Sanchayapatra Rules, 1977 (First Amendment 2002), from 11/06/2005, any institution had the opportunity to invest its recognized provident fund in Bangladesh Savings Certificates with a 5-year maturity. However, funds of the Gratuity Fund, other than those recognized by the Commissioner of Income Tax, did not have the opportunity to be invested in Bangladesh Savings Certificates with a 5-year maturity.

2. In the aforementioned situation, it is advised that if the funds of the 'Gratuity Fund' are invested in 5-year Bangladesh Savings Certificates, they should be liquidated in accordance with the Sanchayapatra Rules, 1977 (First Amendment 2002). It is also requested to identify those officers who are involved in the sale of savings certificates using the gratuity fund funds (if any) and inform this department. It is noteworthy that no interest/profit will be payable on savings certificates invested in violation of the rules.

Yours faithfully,

(Signature)
(Bishnu Pada Saha)
General Manager
Phone: 9530131

Phone: 88-02-9530010-75, 9533700-59, Fax: 88-02-9566212, www.bb.org.bd