Interest rates cut on savings certificates won't affect marginalized investors: Kamal
DHAKA, Sept 22, 2021 (BSS) - Finance Minister AHM Mustafa Kamal today
said that the recent interest rates cut on savings certificates would not
affect the small and marginalized investors.
"With this cut in interest rates, the marginalized people and also those
who keep small investment in savings certificates won't be affected," he
The Finance Minister said this today while replying to a question during
his briefing after the meetings on Cabinet Committee on Economic Affairs
(CCEA) and the Cabinet Committee on Government Purchase (CCGP).
He said usually the savings certificates target the marginalized people
and also the pensioners, but in recent times the government has noticed that
all are coming to these savings tools due to the comparatively higher
interest rates. "If such a trend continues, then the other drivers of the
economy will become stagnant," he added.
Kamal said although the interest rates on savings certificates have been
slashed, but there was no cut on the rates with investment of up to Taka 15
lakh considering the marginalized section of people. "But, still the interest
rates of savings certificates are higher than other deposits now prevail in
The new rates will not affect the present investment and will only be
applicable for fresh investments.
According to the new rules, which came into effect yesterday, the higher
the investment amount, the lower the returns will be. If the investment
amount is higher than Taka 15 lakh, investors will get a lower interest rate,
according to a circular of the Internal Resources Division (IRD) of the
Ministry of Finance.
Asked whether the government wants to discourage people towards savings
tools, Kamal said the government wants to motivate those sections of people
to savings tools who actually require those.
Citing an example, he said that the government does not want anyone to
invest Taka 1 crore in savings certificates, rather the investment could
range between Taka 1 lakh to Taka 30 lakh and through this no one would be
The Finance Minister said the recent cut in interest rates has been made
considering the rates of deposits in other banks, and also the interest of
the marginal investors.
He, however, informed that rationalization of the interest rates of the
savings certificates is an ongoing process and the rates might go up or go
In the last fiscal year (FY21), savings certificates worth Taka 112,188
crore were sold, up 67 percent year-on-year.
Net sales of the savings certificates were Taka 41,959 crore and its
growth was 190 percent year-on-year, according to the data of the Directorate
of National Savings.
The government has allocated Taka 62,000 crore for the current fiscal
year to pay interest on domestic borrowings, up from Taka 58,253 crore in the
Asked about the mushrooming of the e-commerce firms, Kamal said that
such e-commerce firms often appear before the country and people and thus
tend to cheat with the commoners.
He said the concerned Ministries, Divisions, and agencies should take
responsibility to deal with the issue.
Replying to another question about the progress on the government's move
to the decentralization process, Kamal said that the government wants people
to stay where they remain, especially in the rural areas to lessen pressure
on the capital.
For this, he said there is necessary to increase manifold the rural
infrastructures and civic facilities for which the government has been