Wage Earner Development Bond

The following persons shall be eligible to purchase bonds, namely:-
  
A Bangladeshi wage-earner serving abroad and entitled to wage-earners‟ rate of exchange on his own earnings in foreign exchange-

1. In his own name or

2. In the name of any other person named in his application;

     A beneficiary of a wage-earners‟ remittance in foreign exchange in his own name or in the name of wage-earner if he produces sufficient proof to the effect that the remittance has been made by the wage-earner out of his own earnings in foreign exchange or in Taka currency received against foreign exchange remittance and the remittance is adequate to cover the value of the Bond.

SPECIAL FEATURES OF THE BOND

  

     The Bond(s) shall mature for payment on or after five years from the date of its purchase but the Bond-holder may surrender the Bond(s) and encash the same at the paying office after 6 (six) months of purchase when he will be paid the principal amount together with interest on premature encashment at the rate specified below:-

Table: Payable Rate of Interest

	Premature Encashment	Rate of Interest Payable
a)	Before 6 (six) months from the date of issue	No interest.
b)	On completion of 6 (six) months but before 12 months.	8.70% interest for six months.
c)	On completion of 12(twelve) months but before 18 months	9.45% for 12 months.
d)	On completion of 18 months but before 24 months	10.20% for 18 months.
e)	On completion of 24 months but before 60 months.	11.20% for 54 months.
f)	On completion of 60 months and thereafter	12.00% for 60 months.

Note:-Half-yearly interest if drawn for any half-year be adjusted from the amount allowed on the above basis.

·         The Bond-holder will be entitled to draw interest on half-yearly basis at 12% per annual. Any interest if not drawn will be paid with principal Amount on maturity with the benefit of compound interest at 12% on half-yearly basis.

·         The bond(s) shall be issued in the denominations of Tk. 25,000; 50,000; 1,00,000; 2,00,000; 5,00,000; 10,00,000 and 50,00,000 and in such other denominations as the Government may decide from time to time.

·         The purchaser can purchase Bond any amount in multiples of Tk.25,000/-without limit, subject to the minimum investment of Tk. 25,000/-.

·         For investment of Tk. 25,000/-and above, subject to an initial investment of Tk. 25,000/-in one instance by a wage-earner, the wage-earner shall be provided with a death-risk-benefit as provided in rule 14.

·         The Bond shall not be transferable except as a security for any loan from any scheduled bank in Bangladesh subject to conditions as may be determined by Bangladesh Bank.

·         The Principal, interest and the death-risk-benefit, if any, due on the Bond(s) shall be payable in Bangladeshi currency only; provided that on maturity of the Bond(s) the Principal amount or part thereof ( Not the part amount of a Bond of any denomination) may be re-invested for any number of terms of five years or repatriated abroad in foreign exchange in accordance with rule 18(4) ; on maturity, if a holder fails to encash the Bond(s) in his possession, the Principal amount or part thereof shall be treated as re-invested for another term of 5-years

·         The money invested in the purchase of Bond(s) shall be exempt from tax payable under the Income-tax Act, 1922(XI of 1922).

PROCEDURE FOR PURCHASE

·         Application Form.-Application for the issue of the Bond shall be made in Form DB I annexed hereto. The Form will be obtainable free of charge from any Office of Issue. The Office of Issue shall be supplied with Application Forms and Bond Scrips through the Issuing Authority by the PDO, Dhaka

·         Presentation of Application.-

a.       Application for the issue of the Bond shall be submitted to any ‘Office of Issue‟ in Form DB I duly filled in and signed by a wage-earner or his beneficiary .The Office of Issue shall satisfy itself about the bonafide of the wage-earner and the foreign currency amount tendered with the application.

b.      The bank holding the foreign currency amount in FC Account for the wage-earner may also, on the authorization by the wage-earner and on the basis of his application, issue Bonds by debit to the F.C. Account of the wage-earner.

c.       A beneficiary may also submit in any Office of Issue in Bangladesh the application for issue of Bonds against the remittance instrument duly supported by documentary evidence to the effect that the remittance has been made by a wage-earner and it is adequate to cover the value of the Bond.

d.      The applicant (the purchaser) shall clearly indicate in his application the name and address of the holder and the nominee in respect of the Bond .Not more than one holder and one nominee shall be allowed in respect of a single Bond Scrip. The choice once made in this respect shall be final and shall not be reversible.