Dhaka, Bangladesh (BBN) - The Ministry of Finance (MoF) has formed an eight-member high-power committee to recommend new rates of interest on savings instruments.
Syed Monjurul Islam, Additional Secretary, Finance Division, MoF, has been made head of the committee. Other representatives included in the committee are from National Savings Directorate, Bangladesh Bank, Internal Resources Division under the MoF, Finance Division, National Board of Revenue, Postal Department and Office of the Comptroller and Auditor General of Bangladesh.
An official order, issued last week by the Finance Division under the MoF, outlined four-point specific terms of reference (ToR) for the committee.
The committee has been given one month's time from the date of its formation.
“We’ve already started our works to recommend new rates of interest on savings instruments considering the existing overall interest rates situation,” a committee member told BBN without elaborating.
Under the ToR, the committee will recommend new interest rates for the existing savings instruments after analyzing their current rates of interest and current bank interest rates.
The committee members will identify the inconsistencies, if any, between the existing saving schemes, the ToR said.
The committee will consider the possible impact of the proposed rates of interest related to different savings schemes on the country's overall fiscal situation, fiscal budget, the government's borrowing and on social security perspectives, it added.
Currently, four types of savings instruments are being sold by National Savings Directorate. The interest rates available for the existing savings tools range between eight per cent and 12.07 per cent, depending on their duration and maturity period.
BBN/SSR/AD-27Jan12-11:59 am (BST)