The new recurring scheme of the Bank of Bhutan (BoB) will allow its customers to make multiple deposits (subject to total deposit of Nu 20,000 per month) of varying amounts in a month.
In order to encourage savings in the country, BoB launched two new deposit schemes – the Flexi Recurring Deposit (FRD) and Simple Recurring Deposit (SRD) – yesterday in Thimphu.
The FRD scheme allows customers to deposit variable amounts on any date and time in the month using the mobile application mBoB. Depositors opting for the flexi RD scheme can choose to deposit a minimum of Nu 100 per month to a maximum of Nu. 20,000 with tenures ranging from one year to 20 years.
Under this scheme, depositors also have the option to skip an installment without having to pay any penalty. An official from the bank said that the FRD is a unique product available only with the bank and encourages customers to save any amount they can spare unlike the regular RD accounts that has a fixed installment amount to be deposited every month.
The interest rates offered for Flexi RD are slightly lower than the existing RD rates.
The second RD scheme, Simple Recurring Deposit has done away with the restriction of a maximum of Nu 10,000 per month in the exiting RD product and offers the freedom to deposit any amount as monthly installment. However, the monthly deposit should be made only once and is not flexible.
The minimum deposit for SRD is Nu 100 and the interest tenure ranges from one year to maximum of 20 years. Interest rates have remained similar to the existing RD product.
Bank officials said that the SRD is a product that should encourage people with large disposable incomes to opt for a larger fixed installment (over Nu 10,000) per month.
“With the waiver of PIT (Personal Income Tax) on fixed/term deposits introduced by the government, this new product should be popular with people who would like to make larger recurring deposits,” said the official.
Also the bank launched its new website and a new version of the mBoB mobile application. The website has a new look with easy and spontaneous navigation screens. A provision to request a callback is also installed in case any clarification or further information is required.
The revamped mBoB app has a customer-friendly user interface. According to bank officials the changes in the screens and navigation options were developed based on feedback in order to improve the overall experience for users through simplified steps in the new app.
“Users will immediately notice that the improvement in the new mBoB app and it is not only limited to the look and feel but also in the great improvement in the overall usability of the app,” said an official.
The bank will continue to support the older version of the app until 28 April after which it will cease to function. Users can download the new app from Google Playstore or Apple Store as well as for Windows and Blackberry phones.
BoB CEO, Pema N Nadik, said that the launch of the new deposit products is in line with the drive to encourage savings initiated by the government and the Royal Monetary Authority. “Together with growth in credit, growth in savings is equally important for the economic development of the country and as the nation’s oldest and largest bank, BoB is committed to contribute to this effort.”
He added that the bank takes feedback and suggestions from its clients seriously and will always strive to meet and exceed customer expectations.
Currently there are more than 50,000 customers who have registered for the mBoB app.