Bangladesh Bank transfers prize bond and savings certificate responsibilities to scheduled banks

Bangladesh Bank has introduced major changes to how prize bond transactions and savings certificate services will operate across the country. In a circular issued by the Debt Management Department on 2 December, the central bank instructed all scheduled banks to take over the full cycle of prize bond services—including purchase, sale, document collection, and prize claim processing—and submit the verified information to the relevant regional offices of the Bangladesh Bank.

A senior official told The Business Standard that this marks a shift from the previous structure where Bangladesh Bank itself handled verification and processing. “Customers will no longer approach the central bank directly for prize bond services. All dealings will now occur through scheduled banks,” he said.

The circular also confirms that Bangladesh Bank will no longer be involved in selling savings certificates. This responsibility, too, has been completely transferred to scheduled banks. Earlier this month, the central bank suspended a range of customer-facing operations, including the sale of savings certificates and prize bonds, automated challan services, and the exchange of mutilated notes.

Explaining the rationale, the central bank said no central bank in the world provides such direct customer services. Additionally, as Bangladesh Bank is classified as a Key Point Installation (KPI), security requirements necessitated this shift.

For decades, customers accessed these services from the central bank’s Motijheel headquarters and eight regional branches. However, under the new operational structure, all such services will be exclusively handled through commercial banks. This adjustment will require banks to strengthen their operational capacity so they can accommodate increased customer interactions.

AJ