Govt mulls reintroducing Family Savings Certificate
Tuesday, 24 March 2009
S M Jahangir
The government is considering reintroducing the closed Family Savings Certificate (FSC) in order to help enhance the financial security of insolvent women of the society, official sources said.
"A fresh initiative is underway to resume the FSC, paving the way for creating a new source of income for insolvent and less affluent women," said an official.
The official also hinted that the decision on reintroduction of the said savings instrument was expected to be taken shortly at the cabinet committee on economic affairs.
The FSC 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.
Once it is reintroduced, a target group of female investors will be able to gain returns from the monthly interest-based savings tool, said an official.
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-Monthly Sanchaypatra and Pensioners' Sanchaypatra - are in operation under the National Savings Directorate (NSD).
Besides, the NSD is also operating six other development bonds, namely, Wage Earner Development Bond, Three-Year Investment Bond, Bangladesh Prize Bond, Savings Bank, US $ Premier Bond and US $ Investment Bond, officials sources said.
The official figures showed the government's net borrowing through savings and other investment bonds stood at Tk 16.24 billion during the July-January period of the current fiscal.
The government, on the other hand, paid interest to the tune of about Tk 38.68 billion during the said period against its borrowing from the systems.
The government is considering reintroducing the closed Family Savings Certificate (FSC) in order to help enhance the financial security of insolvent women of the society, official sources said.
"A fresh initiative is underway to resume the FSC, paving the way for creating a new source of income for insolvent and less affluent women," said an official.
The official also hinted that the decision on reintroduction of the said savings instrument was expected to be taken shortly at the cabinet committee on economic affairs.
The FSC 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.
Once it is reintroduced, a target group of female investors will be able to gain returns from the monthly interest-based savings tool, said an official.
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-Monthly Sanchaypatra and Pensioners' Sanchaypatra - are in operation under the National Savings Directorate (NSD).
Besides, the NSD is also operating six other development bonds, namely, Wage Earner Development Bond, Three-Year Investment Bond, Bangladesh Prize Bond, Savings Bank, US $ Premier Bond and US $ Investment Bond, officials sources said.
The official figures showed the government's net borrowing through savings and other investment bonds stood at Tk 16.24 billion during the July-January period of the current fiscal.
The government, on the other hand, paid interest to the tune of about Tk 38.68 billion during the said period against its borrowing from the systems.