The government decided to shrink receivable commissions of commercial banks from national savings certificates (NSC). The Internal Resources Division (IRD) under the Ministry of Finance (MoF) made the new rate of commissions effective from September 16, 2021.
From now on, the banks will receive commissions at a rate of 0.05 per cent instead of 0.5 per cent on sales of the government borrowing tools.
Moreover, they can’t charge more than Tk 500 on each of the registrations or purchases of savings tools, which was tk 1000 prior.
The new rate of commissions is effective for five types of savings tools: family savings certificate, five-year-term Bangladesh Savings Certificate, three-monthly profit-based savings certificate, pensioners’ savings certificate, and post office bank-term account (on total deposited amount).
According to DNS data, net government borrowings with the savings tools increased 67.47 per cent in July of the current fiscal year compared to the previous year. Last year, the net sales of NSC rose by Tk 275.31 billion year on year to stand at Tk 419.59 billion.
In FY21, net sales of NSC stood at Tk 219.59 billion higher than the government’s initial budgetary projections.
Source: The Financial Express