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Proposal to create nat'l database gets govt nod

Savings instruments

FE Report | January 24, 2018 00:00:00

The government has finally approved a proposal for creating a national database of investors aiming to modernise management of savings tools and convert those to a sustainable source of deficit financing, officials said.

To this effect, the Ministry of Finance has asked the Internal Resources Division (IRD) to take necessary measures.

The Finance Division in the first week of this month sent some short-term reform proposals to the finance minister for his approval, they added.

According to the approved proposals, a self-sufficient central database of clients/investors in national savings certificates would be created linking with their national identity cards under the Directorate of National Savings (DNS).

Updated information about investment will be uploaded after preparing the database and collecting information about investments in high-yielding savings certificates.

Besides, the DNS will formulate a guideline to include all information about investors in the proposed database.

A separate component is likely to be incorporated into the framework of Strengthening Public Expenditure Management operated by the finance division, a high official of the finance ministry said.

In this regard, a memorandum of understanding (MoU) will also be signed with the authorities concerned. The DNS will maintain and manage the database.

Currently, the Directorate of National Savings (DNS) is under the Internal Resources Division (IRD) according to allocation of business.

On the other hand, the finance division handles the administrative activities on loan affairs. For this, the DNS takes care of short-term reform activities to implement the modernisation process of the national savings tools.

The main objective of national savings schemes is to motivate people to save money and collect scattered small savings and mitigate national budget deficit by collecting money through savings tools.

The tools are also a source of incomes for the country's particular sections of people like women, senior citizens, migrant workers and the people with disabilities.

It is playing an important role in reducing dependence on foreign aid and money inflation etc.

When asked, Mohammad Muslim Chowdhury, Secretary in Charge of Finance Division, recently said: "We have taken short-medium and long-term plans to modernise the country's existing savings tools. Firstly, a database would be created linking it with investors' national identity cards."

He added: "We want to identify those people who are making investments in the savings tools. Then, the government will be able to understand whether the people enjoying higher interest are rich or poor."

The official noted that sometimes people exceed the investment ceiling by purchasing savings tools from different outlets. "We want to control this practice by preparing a database and linking it with their national identity card numbers."

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