Govt launches Account Verification System for error-free savings certificate payments

Investors will no longer have their savings certificate profit and principal payments held up because of incorrect bank account numbers, as the government has introduced an automated Account Verification System (AVS) in the National Savings Scheme Online Management System.

The new system will become operational tomorrow (15 September) through coordination between Bangladesh Bank and scheduled banks, according to a press release issued today (14 September).

The AVS will instantly verify bank account details provided by customers when purchasing savings certificates or bonds, reducing the risk of payments being returned or credited to an incorrect account.

According to the release, the initiative has been introduced under the Strengthening Public Financial Management Program to Enable Service Delivery (SPFMS), implemented by the Finance Division under the Ministry of Finance.

Transactions involving nine of the government’s 11 national savings schemes are currently processed automatically through the National Savings Scheme Online Management System, commonly known as the NSC system.

The system has 3,946,224 registered distinct customers. On average, around 175,000 electronic fund transfers (EFTs) are made every day to pay investors their profits and principal, while approximately 8,000 new savings certificates are issued daily.

The NSC system already had provisions to verify customers’ national identity cards and mobile phone numbers. Bank account verification has now been added to these safeguards.

Previously, the online platform had no facility to automatically verify bank accounts. The account number provided by an applicant was entered into the system exactly as submitted. If even one digit was incorrect, the profit or principal transferred through EFT would be returned.

Officials then had to correct the information and initiate the transfer again. This caused delays and inconvenience for investors while increasing the workload of issuing offices, the Department of National Savings and other agencies concerned.

An incorrect account number also created a risk of an investor’s money being deposited into someone else’s account.

Under the new arrangement, a bank account number will be verified as soon as it is entered into the NSC system. The verification will be conducted through Bangladesh Bank and the relevant scheduled bank.

The system will first determine whether the account is valid and active. It will then match the account holder’s information with their national identity card or passport number to confirm their identity.

This will allow errors or discrepancies to be detected before a transaction is processed.

The AVS will be used in two situations. It will verify a customer’s bank account when they purchase a new savings certificate or bond.

It will also instantly verify any new account provided by an investor seeking to change or correct their existing bank details after making an investment.

The Department of National Savings expects the introduction of AVS to bring the rate of incorrect bank account entries down to almost zero. It will reduce returned EFTs, ease hassles for investors and minimise additional work for the offices concerned.

The system will also help ensure that investors’ funds are transferred accurately and securely to the bank accounts of the rightful recipients.

According to the Finance Division, the AVS marks an important step towards modernising digital services under the national savings schemes. The technology-based arrangement, connected to Bangladesh Bank, is expected to make savings certificate transactions safer, more transparent and more reliable.

The Finance Division expects the system to reduce errors across the large volume of transactions processed each day and ensure investors receive their money promptly and securely in their designated bank accounts.