Savings Products Policy

1.1 Purpose

The Savings Products Policy establishes the principles, products, procedures, and controls governing the mobilization, management, and withdrawal of member savings under the Microfinance Programme of Prothik Agrajatra Foundation (PAF). Savings services are intended to strengthen members’ financial resilience, encourage regular saving habits, support household financial security, and contribute to the long- term sustainability of the Foundation. Important: PAF shall mobilize and manage member savings only to the extent permitted by applicable laws, regulations, and any conditions attached to its regulatory authorization.

1.2 Objectives

The objectives of the Savings Programme are to:

Encourage a regular savings culture among members.
Promote financial discipline and long-term financial planning.
Build emergency financial reserves for member households.
Support investment in income-generating activities.
Improve household resilience against economic shocks.
Strengthen members’ financial inclusion.
Contribute to the sustainability of the Foundation’s microfinance operations.
Promote responsible financial management.

1.3 Guiding Principles

The Savings Programme shall operate based on the following principles:

Safety of member funds.
Transparency in pricing and terms.
Simplicity of products.
Accessibility.
Voluntary participation where applicable.
Accurate record keeping.
Timely withdrawal and settlement.
Regulatory compliance.
Client protection.

1.4 Savings Products

The Foundation may offer the following savings products, subject to Board approval and applicable regulatory requirements. Product Purpose Eligible Members Compulsory Savings Regular savings

linked to

membership

Active Borrowers Voluntary Savings Flexible personal

savings

Eligible Members Fixed Term Savings Long-term wealth

accumulation

Eligible Members

Capital Build-Up

Savings

Asset creation and

future investment

Active Members

Emergency Savings Emergency

household needs

Eligible Members

1.5 Compulsory Savings

Purpose Compulsory Savings encourage disciplined saving and support members in building a financial reserve during their participation in the Microfinance Programme.

Key Features

Collected according to the approved savings schedule.
Deposited into the member’s savings account.

Recorded in both the passbook and the Management Information System (MIS).
Eligible for withdrawal in accordance with the Foundation’s policy.
Interest or profit-sharing, if any, shall be determined by the Board and applicable

regulations.

1.6 Voluntary Savings

Purpose Voluntary Savings allow members to save additional funds beyond any compulsory savings

requirement.

Features

Members may deposit amounts above the prescribed minimum, if any.
Deposits may be made during regular collection meetings or at branch offices.
Withdrawals may be made subject to account conditions and operational

procedures.

Interest or returns, where applicable, shall be determined by the Board and

communicated transparently.

1.7 Fixed Term Savings

Purpose To encourage long-term savings for education, business expansion, housing improvement, or other future financial goals.

Features

Fixed savings period approved by the Foundation.
Higher return than ordinary savings, where approved.
Early withdrawal may be permitted subject to applicable terms and conditions.
Maturity value shall be calculated according to the approved product rules.

1.8 Capital Build-Up Savings

Purpose To help members accumulate capital for future productive investment and strengthen

household financial security.

Features

Regular periodic contributions.
Long-term savings objective.
Clearly defined maturity conditions.
Transparent calculation of benefits.
Separate accounting and reporting.

1.9 Emergency Savings

Purpose Emergency Savings are intended to provide members with quick access to funds during

unforeseen events.

Examples include:

Medical emergencies.
Natural disasters.
Fire or flood damage.
Urgent household expenses.
Other verified emergencies.

The Foundation shall establish procedures to facilitate timely access while maintaining appropriate internal controls.

1.10 Eligibility

A member may open an eligible savings account if:

Membership has been approved.
Identity verification (KYC) has been completed.
Required documentation has been submitted.

The member agrees to the applicable terms and conditions.

1.11 Deposits

Savings deposits shall:

Be received only through authorized staff or approved channels.
Be supported by an official receipt.
Be recorded immediately in the passbook and MIS.
Be reconciled with daily cash records.

No employee shall accept deposits without issuing an official receipt.

1.12 Withdrawals

Members may request withdrawal of eligible savings in accordance with the product rules. Withdrawal procedures shall include: 1. Submission of a withdrawal request. 2. Verification of member identity. 3. Verification of account balance and any applicable conditions. 4. Authorization by the designated officer. 5. Payment through approved channels. 6. Updating of records in the passbook and MIS. The Foundation may require a minimum account balance or other conditions approved by the Board, provided these are clearly communicated to members.

1.13 Interest / Return

Where interest or any other return is offered:

The applicable rate and calculation method shall be approved by the Board of

Trustees.

Members shall receive clear information regarding the calculation and payment of

returns.

Any changes shall be communicated before implementation.

All returns shall comply with applicable law and regulatory requirements.

1.14 Dormant Accounts

A savings account may be classified as dormant if no qualifying transaction occurs for the period specified by the Foundation.

Dormant accounts shall:

Be monitored separately.
Remain protected.
Be reactivated upon satisfactory verification of the member’s identity and

completion of required procedures.

1.15 Closure of Savings Accounts

Savings accounts may be closed due to:

Written request by the member.
Termination of membership.
Death of the member.
Fraud or serious policy violation.
Other reasons approved by the Foundation.

Before closure, the Foundation shall verify:

Outstanding loan obligations.
Applicable deductions authorized by law or contract.
Identity of the claimant.
Supporting documentation.

1.16 Internal Controls

The Foundation shall implement the following controls:

Segregation of duties.
Daily cash reconciliation.
Passbook verification.
MIS reconciliation.

Surprise cash counts.
Independent review of withdrawals.
Internal audit.
Secure record retention.

1.17 Monitoring and Reporting

Management shall monitor:

Total savings portfolio.
Number of active savings accounts.
Average savings balance.
Deposit growth.
Withdrawal trends.
Dormant accounts.
Reconciliation exceptions.
Member complaints relating to savings.

Periodic reports shall be submitted to senior management and the Board.

1.18 Product Review

Savings products shall be reviewed periodically considering:

Member demand.
Regulatory changes.
Operational experience.
Financial sustainability.
Market conditions.
Risk profile.

New products or significant revisions shall require approval by the Board of Trustees.

Standard Forms

SP-01 Savings Account Opening Form
SP-02 KYC Verification Checklist

SP-03 Deposit Slip
SP-04 Withdrawal Application
SP-05 Savings Passbook
SP-06 Nominee Declaration Form
SP-07 Account Closure Form
SP-08 Dormant Account Reactivation Form
SP-09 Daily Savings Register
SP-10 Monthly Savings Portfolio Report