TIN database to be used in savings certificates
The government has taken an initiative to make the savings certificates more transparent through technological integration at a time when the net sale of the savings tool is declining and investors are increasingly cashing their savings, instead of parking new investments.
The purchase of a savings certificate requires a mobile number, which is linked with the national identity card (NID) server, but not connected to the tax identification number (TIN) server.
The authorities are mulling the introduction of a system to verify the investments in savings certificates through the TIN server to ensure authenticity of the investors, according to sources at the finance ministry.
The ministry’s finance division now runs a programme called ‘Strengthening public expense management: Continuity of priority programmes.’ It was supposed to end in June next year, but the authorities are going to extend its duration to a significant extent.
There is a target to sell savings certificates worth Tk 350 billion in the fiscal year 2022-23. But the sale was in the red in the first four months (July-October) as the savings certificates received investments of Tk 6.32 billion in negative, let alone net investment.
The issue of ensuring transparency and low sale of savings certificates was discussed in a meeting of the cash and debt management committee (CDMC) on Sunday, with finance secretary Fatima Yasmin in the chair.
The investors, however, cast doubt over the initiative as to whether the finance division is trying to further discourage investments in savings bonds in the name of boosting transparency.
Sayful Islam, a client of post office savings, believes the initiatives are not time-befitting.
According to sources, the trade of savings certificates has not yet been fully automated. The government, hence, cannot calculate the savings tool automatically with the integrated budget and accounting system (iBAS++). So, the monthly calculation of savings bonds now remains incomplete.
There is a rule to submit e-TIN, in addition to NID copy, while investing in savings certificates. But the finance division found that the rule is not being followed properly in the case of e-TIN.
There is a risk of data fraud when someone withdraws the savings certificate before it matures or changes mobile number and nominee. The finance division wants development of the OTP system (one time password) to ward off the threat of data fraud.
The current OTP system has some complications. Moreover, it requires a long period to encash the savings certificates when an investor passes away.
A top level official of the finance division said on the condition of anonymity that the initiatives will be implemented gradually under the prevailing programmes of the finance division. Therefore, the programmes are being extended.
The net sale of savings certificates will face a blow once the decisions come into effect, the officials said, adding it will however bring a positive result in the longer run.