Savings investors to get instant bank verification

Investors in government savings certificates will no longer face delays or payment hassles caused by incorrect bank account numbers, following the rollout of an Automated Account Verification System (AVS).
The new feature, integrated into the National Savings Scheme Online Management System (NSC System), takes effect today. 
Developed in coordination with Bangladesh Bank and scheduled commercial banks, the tool will instantly verify an investor’s bank account details at the time of purchasing savings certificates or bonds.
The initiative is part of the Finance Division’s “Strengthening Public Financial Management Program to Enable Service Delivery” (SPFMS).
Currently, nine of the government’s 11 national savings schemes operate through the automated NSC System, which serves 3.95 million registered individual investors. 
The platform handles approximately 175,000 Electronic Fund Transfers (EFTs) daily for profit and principal payouts, alongside issuing roughly 8,000 new certificates each day.
While the NSC System already authenticates National Identification (NID) and mobile phone numbers, instant bank account validation completes the digital verification framework.
Reducing errors and payment risks
Until now, the online system did not have an automated mechanism to verify bank account numbers. The account number provided by an applicant was entered directly into the system.If even one digit was entered incorrectly, a profit or principal payment sent through EFT could be returned. The information then had to be corrected before the payment could be sent again.
This caused inconvenience for investors and increased the workload of issuing offices, the National Savings Directorate and other relevant agencies.
There was also a risk that money intended for one investor could be mistakenly transferred to another person’s account because of an incorrect account number.

Under the new system, as soon as a bank account number is entered into the NSC System, it will be verified through Bangladesh Bank’s IT infrastructure and the relevant scheduled bank.
The system will first check whether the account number is valid and active. It will then match the account holder’s information with the customer’s NID or passport number to confirm the account holder’s identity.
This will allow errors or discrepancies to be identified before a transaction is processed.
AVS to cover new purchases, account changes
The new verification system will be used in two situations.
First, a customer’s bank account will be verified when purchasing a new savings certificate or bond. 
Second, if an investor wants to change or correct bank account details after purchasing a savings certificate, the new account will also be verified instantly through the same process.
The National Savings Directorate expects AVS to significantly reduce incorrect bank account entries and the risk of EFT payments being returned. 
It is also expected to reduce inconvenience for investors and ease the workload of government offices involved in savings certificate transactions.
The system will make it easier to ensure that investors’ entitled funds are transferred safely and accurately to the accounts of the actual account holders.
According to the Finance Division, the introduction of AVS is an important step towards modernising digital services under the national savings schemes.
The technology-based system, developed in coordination with 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 daily transactions while ensuring that customers’ money reaches their designated bank accounts quickly and securely.