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Business

Web Desk
December 10, 2020

Old Rs25,000 prize bonds to become dysfunctional from May 31: Finance Division

Business

Web Desk
Thu, Dec 10, 2020

ISLAMABAD: The Finance Division announced on Thursday that the old Rs25,000 prize bonds will become dysfunctional from May 31, 2021 and a new registered prize bond will now be available for sale.

This has reportedly been done to address the Financial Action Task Force’s concerns over money laundering and terror financing.

Existing bondholders have the option to encash/redeem/convert their bonds by May 31, 2021 in the following ways:

1. The bonds can be converted to Premium Prize Bonds (Registered) through the 16 field offices of the State Bank of Pakistan's Banking Services Corporations or through branches of six commercial banks, namely National Bank of Pakistan, Habib Bank Limited, United Bank Limited, MCB Bank Limited, Allied Bank Limited and Bank Alfalah Limited.

2. The bonds can also be converted to Special Savings Certificates or Defence Savings Certificates through SBP's field offices, authorised commerical banks or National Savings Centres.

3. The bonds can be encashed through transferring the proceeds to the holder's bank account through SBP's field offices, authorised commerical banks or National Savings Centres.

The person opting to cash out their bonds will only be able to transfer money to his account in person.

The notification also stated that to get the prize money the person will have to submit the prize bond and give a copy of their CNIC to the SBP.

New registered prize bond

The Finance Division, in a separate notification, issued a new Premium Prize Bond of Rs25,000 with “immediate effect”.

Under the new bond, two first place prizes of Rs30 million will be awarded, while five second place prizes worth 10 million will also be given. The bond will also have 700 prizes for third place that will give 0.3 million each. The draw for the prize bonds will be held quarterly.

The registered bond will also give 1.79% biannual profit to the bond holders.

Meanwhile, those who have an unregistered prize bond of the same amount can also buy the registered one.