Govt lifts investment cap on wage earners bond
NN Online:
The government has lifted the highest investment limit of the wage earner bond for expatriate Bangladeshis to accelerate remittance flow.
With the removal of the cap, there is no ceiling of investment in any bonds issued by the government to enable NRBs to park their funds in the country. To this end, the Internal Resources Division (IRD) on Sunday issued a notification.
According to the notification, Non-Resident Bangladeshi (NRB) mariners, pilots, and cabin crew members employed by foreign-owned shipping and airline companies are also now eligible to invest in Wage Earner Bonds.
These changes, set to take effect on 1 December 2024, include the option to reinvest in the National Savings Scheme (NSS) products, including the Family Savings Certificate, Pensioner Savings Certificate, three-month profit-based Savings Certificate, Wage Earner Development Bond, US Dollar Premium Bond, and US Dollar Investment Bond.
Under the revised policy, NRBs can invest remitted funds in Wage Earner Development Bonds for an initial term, with the option to reinvest for two additional terms, allowing up to 15 years of investment in total.
Similarly, US Dollar Premium and Investment Bonds permit reinvestment for up to four additional terms, providing a total investment period of 15 years.
The IRD believes these incentives, alongside the elimination of the investment cap, will attract more foreign currency investments from expatriates, fostering sustained economic progress for Bangladesh.