Nearly 21 banks have suspended the sale of savings certificates (Sanchayapatra), largely because many are struggling to repay investors upon maturity, according to central bank officials following a nationwide investigation into allegations that bank branches were turning away customers seeking to purchase the instruments.
Special inspection teams from Bangladesh Bank carried out surprise visits to branches across the country on Sunday and Monday after complaints surfaced on social media claiming that several banks had stopped selling savings certificates.
The two-day inquiry uncovered only isolated operational issues and found no evidence to substantiate claims of a widespread refusal by banks to offer the government-backed savings products.
Bangladesh Bank sources said savings certificate services are currently unavailable at 21 banks, including nine foreign-owned institutions. Of these, 12 are reportedly facing acute financial stress and lack the capacity to honour payments to customers upon maturity.
Officials believe many of the grievances circulating online originated from clients of these troubled lenders.
A senior central bank official said banks are legally obliged to provide savings certificate services to eligible customers. To verify the allegations, Bangladesh Bank conducted unannounced inspections at branches of 40 banks on June 28 and 29.
During the first day's operation, inspectors found that one fifth-generation private commercial bank had been unable to sell savings certificates. Further investigation revealed, however, that the institution was still awaiting the issuance of an identification code required to access the online management system.
On Monday, a branch of a state-owned bank outside Dhaka temporarily suspended sales because of a server malfunction. Apart from these isolated incidents, inspectors detected no significant irregularities. Additional branches were subsequently visited to confirm the overall picture.
At present, four savings instruments are available through the online management platform: the Family Savings Certificate, Pensioner Savings Certificate, Three-Month Profit-Based Savings Certificate and Five-Year Term Savings Certificate. These products can be purchased and redeemed through National Savings Directorate offices, bank branches and post offices nationwide.
The government's reliance on savings certificates has steadily diminished over the past four years as redemptions have consistently outpaced fresh investments, resulting in negative net borrowing. Consequently, the state has been paying out more in principal and profit than it has raised through the scheme.
Despite the prolonged decline, the government has set a borrowing target of Tk8,500 crore from savings certificates in the FY2026-27 budget, down from Tk11,500 crore in the revised allocation for the outgoing fiscal year.
Latest Bangladesh Bank data show that net borrowing through savings certificates fell by Tk2,690 crore during the first nine months of the current fiscal year through March.
The decline stood at Tk6,063 crore in FY2024-25, Tk21,124 crore in FY2023-24 and Tk3,295 crore in FY2022-23.
As of the end of March, the government's outstanding liabilities under savings certificates amounted to Tk339,804 crore.
