ISLAMABAD: The Finance Division has instructed CDNS (Central Directorate National Savings) to introduce digital prize bonds to fulfil the void left by the discontinuation of bearer prize bonds.
This initiative is particularly noteworthy due to its paperless nature which eliminates the need for expenses related to printing and logistics. Additionally, digital prize bond is registered under the purchaser’s name, which mitigates the risk of theft, damage or loss.
This move represents a significant stride towards documenting the economy and enhancing transparency and accountability as well. Moreover, it would ease access for both purchasing and selling, streamlining the entire process for efficient management. According to a summary prepared by the finance ministry for approval from competent forums and official documents available with this correspondent, initially the digital prize bonds of Rs500, 1,000, 5,000 and 10,000 will be issued in denominations as notified by the Finance Division from time to time.
A single adult Pakistani citizen can purchase it through the National Savings Mobile App or any other channel approved by CDNS.
Payment for purchase is to be made through a linked bank account or CDNS Saving Account.
The digital prize bond will be redeemed through the Mobile Application and credited into the linked bank account and CDNS savings account that was used to purchase.
The official document also reveals that the draw of digital prize bonds would be held on quarterly-basis or as notified by the Finance Division.
The draw schedule will be announced by CDNS at the start of each calendar year.
The prize amount will be credited to the linked bank account, or CDNS savings account number and the amount of the prizes for each denomination shall be determined by the Finance Division.
The prize amount will be taxable but it will be exempt from Zakat.
The purchaser of the digital prize bond could make a nomination at the time of purchase which can be changed or cancelled in the future. In case of death of the investor, the principal amount and prize money, in respect of bond of the deceased shall be payable to his/her legal heirs according to the succession certificate and if the net amount does not exceed Rs500,000, the payment shall be made to the nominee as mentioned at the time of purchase.
