Investors will no longer have their savings certificate profit and principal held up because of an incorrect bank account number.

The risk of funds being transferred to the wrong account will also decline following the introduction of the automated Account Verification System (AVS) in the National Savings Scheme Online Management System.

The system is being operationalized on 15 September through coordination between Bangladesh Bank and the relevant scheduled banks. It will instantly verify the bank account details submitted by customers when they purchase savings certificates or bonds, according to a press 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 now processed automatically through the National Savings Scheme Online Management System, commonly known as the NSC system.

The NSC system currently 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. At the same time, approximately 8,000 new savings certificates are issued daily.

The system already had provisions for verifying 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 verify bank accounts automatically. 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 hardship and delays for investors while increasing the workload of issuing offices, the Department of National Savings and other agencies concerned. An incorrect account number also created the risk of an investor’s money being deposited into somebody 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 number 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. Any error or discrepancy can therefore 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.