Saturday, April 11, 2020 | ePaper

Decreasing interest rate of postal savings: This is govt's madness for money

  • Print
THE government has slashed interest rates on postal savings by half as part of its efforts to reduce interest rates on bank loans and deposits, and promote investment in the private sector. The Internal Resources Division of the Ministry of Finance on Thursday issued a circular regarding this with immediate effect. The saving scheme was the first choice of retired people and the middle-class for getting High returns. The latest government's decision will discourage them to save, eventually the saving tendency would be hampered, and the poor to middle-class people will feel financially insecure. The interest rate on one-year savings was reduced to 5 per cent from 10.20 per cent. For two-year schemes, interest rate was cut to 5.50 per cent from 10.70 per cent while it was slashed to 6 per cent from 11.28 per cent for three-year schemes. The depositors can withdraw profits from their postal savings after six months. In such case, interest rate would be 4 per cent for one-year schemes, 4.50 per cent for two-year schemes and 5 per cent for three-year schemes. Previously, the rates were 9 per cent, 9.50 per cent and 10 per cent respectively. The majority of banks have already implemented the decision to offer 6 percent interest rate on their Fixed Deposit Receipts (FDRs).
The banks are also expected to provide loans at 9 percent interest rate within a couple of months. Last year, private banks agreed to set single-digit interest rate on their deposit and loan schemes. On January 28 this year, the Association of Bankers, Bangladesh -- a forum of managing directors of banks -- decided to provide not more than 6 per cent interest on FDRs from February 1. On one hand, the banks are taking people's money in exchange of only 6% interest and giving them loan on 9% interest rate on the other. What an injustice! Most of the banks are now facing severe fund crunch due to large amount of defaulted loans taken by big business houses. Billions of taka have already been drained out from the country. The government itself is running the State machinery taking loans from different sources.
Not a single source remains from where government is not taking money.  The madness of the government for cash flow of money will surely take the economy on the verge of collapse.   
 

More News For this Category

Govt`s lockdown and shutdown thrown lakhs of people jobless

Maintaining the level of domestic demands during the extended shutdown period to tackle the spread of coronavirus would become a tough challenge for the authorities concerned. Newspapers reported that

Government can`t depend on its own people for capacity building

With six more deaths in last 24 hours, the death toll reached at 27 and the total number of infected was 424 in Bangladesh on Friday. In the last

Coronavirus

Coronavirus

Prof. Paresh Chandra Modak :Fear about corona virus stops almost all functions in our globe. It's a war between man and the virus. It makes all the pathological investigations

Corona Attack

Corona Attack

Dr. Forqan Uddin Ahmed :Stay at home, quarantine, isolation all are not so relaxing. In the civilized modern world, people are not used to such things. These practices make

Incentives offered to doctors and nurses is well deserved

The government has decided to give incentives to doctors, nurses, health workers and other employees who are fighting the war against COVID-19. Besides, there would be health insurance of

Bailout by banks necessary but trustworthy monitoring system to be found

The Association of Bankers on Tuesday decided to call upon the central bank to take more policy measures to allow them to implement the lion's share of the Tk

Air Pollution

Md. Arafat Rahman :The introduction of harmful or excessive quantities of substances into earth's atmosphere is known as air pollution. Sources of air pollution include gases (such as ammonia,

Playing

Md. Abdur Rahim :Educational institutions being closed for global coronavirus pandemic, the students cannot contact the teachers directly. They are not getting any instruction from the teachers. On the

Lack of coordination makes situation critical

On Saturday the administration ordered a total lockdown of Dhaka and Narayanganj cities, and Madaripur and Gaibandha districts to fight the spread of coronavirus. This included lockdown of areas where

In other countries affected by corona tax collection is not a priority

Forecasting that revenue collection shortfall might reach Tk 1 lakh crore in the current fiscal year, the Centre for Policy Dialogue in its budget proposal has recommended the National Board