Govt mulls raising investment ceiling to Tk 5.0m
Friday, 28 August 2009
S M Jahangir
The government is considering raising the ceiling of investment in the state-run pensioner savings certificate by Tk 2.0 million for the greater interest of its beneficiaries, official sources said.
"A move is underway to considerably enhance the investment ceiling of the existing 'pensioner sanchaypatra' in order to make it time befitting," a senior government official said.
Under the move, a proposal for raising the investment limit to Tk 5.0 million for the pensioners concerned is under study, the official mentioned.
At present, the permissible limit of investment is Tk 3.0 million for an investor under government-run pensioner savings instrument, official sources said.
The authorities have initiated the process of increasing such investment limit, taking increased investment capacities of many pensioners into account.
Since retirement benefits of many pensioners remain much higher than the official investment limit, they are unable to invest their entire earnings in that particular investment tool, said an official.
According to the official provision, retired officials and employees of the government, semi-government, autonomous and semi-autonomous bodies of civil and armed forces or their beneficiaries are entitled to investment in the five-year pension 'sanchaypatra.'
A 12.50 per cent rate of profit is calculated after the maturity of the savings certificate while profit can be drawn after every three months, he added.
Official sources said, the rate of profit gained from the pensioner 'sanchaypatra' is higher than that of other state-run savings instruments.
Apart from the enhancement of the investment ceiling, another proposal on reintroduction of the closed 'family sanchaypatra' is also under consideration of the government.
Reintroduction of the family savings certificate (FSC) aims to help enhance the financial security of insolvent women of the society, official sources said.
The family 'sanchaypatra' was first introduced in 1997 during the regime of Awami League government but its operation was shut in 2002 by the last four-party alliance government. According to the official sources, the initial rate of interest on the FSC was 13.20 per cent per annum while the rate was 11.94 per cent during its closure.
Currently, three different types of savings certificates - five-year 'sanchaypatra,' three-month 'sanchayapatra' and pensioners 'sanchayapatra' - are in operation under the National Savings Directorate (NSD).
Besides, the NSD is also operating five other development bonds, namely, wage earners' development bond, three-year investment bond, Bangladesh Prize Bond, US $ Premier Bond and US $ Investment Bond, official sources said.
The government borrowed a net amount of nearly Tk 36.33 billion through selling the existing savings instruments in the fiscal 2008-09, official figures revealed.
Besides, it had to count Tk 70.61 billion as interest during the same period for servicing such public debt, the figures suggested.
The government is considering raising the ceiling of investment in the state-run pensioner savings certificate by Tk 2.0 million for the greater interest of its beneficiaries, official sources said.
"A move is underway to considerably enhance the investment ceiling of the existing 'pensioner sanchaypatra' in order to make it time befitting," a senior government official said.
Under the move, a proposal for raising the investment limit to Tk 5.0 million for the pensioners concerned is under study, the official mentioned.
At present, the permissible limit of investment is Tk 3.0 million for an investor under government-run pensioner savings instrument, official sources said.
The authorities have initiated the process of increasing such investment limit, taking increased investment capacities of many pensioners into account.
Since retirement benefits of many pensioners remain much higher than the official investment limit, they are unable to invest their entire earnings in that particular investment tool, said an official.
According to the official provision, retired officials and employees of the government, semi-government, autonomous and semi-autonomous bodies of civil and armed forces or their beneficiaries are entitled to investment in the five-year pension 'sanchaypatra.'
A 12.50 per cent rate of profit is calculated after the maturity of the savings certificate while profit can be drawn after every three months, he added.
Official sources said, the rate of profit gained from the pensioner 'sanchaypatra' is higher than that of other state-run savings instruments.
Apart from the enhancement of the investment ceiling, another proposal on reintroduction of the closed 'family sanchaypatra' is also under consideration of the government.
Reintroduction of the family savings certificate (FSC) aims to help enhance the financial security of insolvent women of the society, official sources said.
The family 'sanchaypatra' was first introduced in 1997 during the regime of Awami League government but its operation was shut in 2002 by the last four-party alliance government. According to the official sources, the initial rate of interest on the FSC was 13.20 per cent per annum while the rate was 11.94 per cent during its closure.
Currently, three different types of savings certificates - five-year 'sanchaypatra,' three-month 'sanchayapatra' and pensioners 'sanchayapatra' - are in operation under the National Savings Directorate (NSD).
Besides, the NSD is also operating five other development bonds, namely, wage earners' development bond, three-year investment bond, Bangladesh Prize Bond, US $ Premier Bond and US $ Investment Bond, official sources said.
The government borrowed a net amount of nearly Tk 36.33 billion through selling the existing savings instruments in the fiscal 2008-09, official figures revealed.
Besides, it had to count Tk 70.61 billion as interest during the same period for servicing such public debt, the figures suggested.