Abstract:
A company normally keeps its surplus funds in various banks as FDR (Fixed Deposit Receipt). So, each company should have FDR policy in order to establish and set forth a uniform procedure and guideline to regulate and/or control the placement of funds in different scheduled banks subject to the government’s directives. The bank for keeping the money as FDR is broadly selected with a policy of maximizing its return. But the risk factors are very important to be considered while keeping the money. The standard and status of a bank has to be considered more over the profit to be generated from fixed deposit. For example the Oriental bank of Bangladesh in 2006 faced bankruptcy due to fall in its reserve and the companies who deposited their money in that bank had to face severe problem in realizing the money. So, the factors to be considered for choosing a bank for FDR are very important for making the FDR policy. Moreover the factors once decided must be reviewed time to time as the scenario of the investment parameters may change. Additionally when an emergency arises from the point of view the bank and/or the company itself, it may be necessary to materialize the invested amount. All the aspects mentioned above should be incorporated in the FDR policy. Once the policy is framed for the sake of accurate determination of a particular investment or a particular realization of previous investments an integrated full fledge software system needs to be deployed.
