Economic Reporter :
Regulators are shutting the door on the investment of gratuity funds in saving certificates to curb sales of schemes that are increasing the state coffer’s debt burden.
The central bank wrote to the banks on Monday telling them that funds from gratuity cannot be invested anymore in schemes offered by the Directorate of National Savings (DNS).
Analysts say due to a sluggish and somewhat fluctuating capital market and lower interests offered on bank deposits, investors consider DNS schemes as a ‘less-risky investment option.’
Regulators are shutting the door on the investment of gratuity funds in saving certificates to curb sales of schemes that are increasing the state coffer’s debt burden.
The central bank wrote to the banks on Monday telling them that funds from gratuity cannot be invested anymore in schemes offered by the Directorate of National Savings (DNS).
Analysts say due to a sluggish and somewhat fluctuating capital market and lower interests offered on bank deposits, investors consider DNS schemes as a ‘less-risky investment option.’
