SBP orders same-day settlement for Premium Prize Bond sales

Karachi – The State Bank of Pakistan (SBP) has introduced a new system for the sale of Premium Prize Bonds and issued important instructions to commercial banks.

According to details, the State Bank of Pakistan has directed all commercial banks to settle the proceeds from the sale of Premium Prize Bonds on the same day.

In a circular issued by the SBP, it was stated that the new system has been introduced after reviewing the existing mechanism for reporting transactions related to the sale of Premium Prize Bonds.

Under the new procedure, banks will report details of Premium Prize Bond sales through the Data Acquisition Portal within the prescribed time. The State Bank Banking Services Corporation will then deduct the reported sales amount from the relevant bank account on a daily basis.

The State Bank has clarified that if a bank fails to settle the sales proceeds on the same day, it will have to pay charges for using the funds during the delay. These charges will be imposed for each day of delay at the SBP’s overnight reverse repo selling rate.

The circular further stated that the calculation and recovery of these charges will be carried out by the SBP Karachi Office. The amount will be deducted from the relevant bank account and deposited into the Central (Non-Food) Account.

The State Bank also clarified that if profit or prize money is incorrectly paid due to inaccurate, delayed or incomplete reporting of sales, encashment or transfer transactions, the concerned bank will be fully responsible. However, where applicable, adjustments will be made to the income tax amount.