Bangladesh Bank orders scheduled banks to forward prize bond transactions and award claim data

The Bangladesh Bank issued a significant circular on 2 December instructing all scheduled banks to send detailed information regarding prize bond purchases, sales, and award claims directly to the central bank. The circular, released by the central bank’s Debt Management Department, states that banks must collect all relevant documents—such as purchase forms, sale records, and prize claim applications—and forward them accordingly to the regional offices of Bangladesh Bank.

A senior official of the central bank told The Business Standard that going forward, scheduled banks will handle all processes related to prize bond transactions and award claims in direct communication with the Bangladesh Bank. Under the previous arrangement, most documents were reviewed and processed by the central bank itself. With the new system in place, the scheduled banks will now complete the verification process before submitting the necessary paperwork.

Additionally, the circular confirms that the responsibility of selling savings certificates will no longer lie with Bangladesh Bank. Instead, scheduled banks will take over the entire operation of savings certificate sales, marking a substantial shift in the handling of public financial instruments. Earlier this month, Bangladesh Bank discontinued a range of customer-facing services, including the sale of prize bonds, savings certificates, automated challan services, and the exchange of damaged notes, across all its branches in Dhaka, Chattogram, Khulna, Bogura, Rajshahi, Sylhet, Barishal, and Rangpur.

According to the central bank, it made the decision because no central bank worldwide provides such direct public services. Furthermore, as Bangladesh Bank is designated a Key Point Installation (KPI), it prioritised enhanced security considerations, which prompted the discontinuation of these services.

For decades, members of the public obtained these services from the Bangladesh Bank’s Motijheel office and other regional branches. However, from now on, all such services will be provided exclusively through commercial banks, bringing operational changes for customers.

Table: Revised Responsibilities

AJ