Bangladesh Raises Investment Ceiling On Pensioner Savings Certificate

October 22, 2009 2:01 p.m. EST

Dhaka, Bangladesh (AHN) - The Bangladesh government has enhanced the ceiling on investment in pensioner savings certificate by $28,923 (BDT 2.0 million) in order to help retired government officials invest more in the state-run investment tool.

"The government has revised the rule 6 of the 'Pensioner Sanchay Patra' Policy -2004, raising the maximum purchase limit of the investment tool to $72,307 million (BDT 5.0 million) for retired government servants," the finance ministry said in a notification, issued recently.

Earlier an individual retired government official was able to invest maximum $43,384 (BDT 3.0 million) on account of retirement benefit and provident fund in the pensioners' savings instrument.

"The government has increased the upper limit of investment in pensioner savings instrument in line with the pensioners requirement," a senor of the Bangladesh Bank (BB), the country's central bank, told the AHN Media in Dhaka on Thursday. According to the existing provisions, retired officials and employees of the government semi-government, autonomous and semi-autonomous bodies of civil and armed forces or their beneficiaries are entitled to invest in the five-year term 'pensioner sanchaypatra'.

A 12.50 percent rate of interest/profit is calculated after the maturity of the savings certificate while profit can also be withdrawn after every three months, the BB officials added.