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ISLAMABAD: The federal has decided to discontinue Rs7, 500 denomination national prize bonds from circulation, according to a notification issued by the Finance Division.
“Prize bonds of Rs7, 500 denomination shall not be sold with immediate effect and will not be encashed/redeemed after December 31, 2021,” said the notification issued by the Ministry of Finance.
The bondholders would be able to convert their bonds to premium prize bonds (registered) of denomination of Rs25,000 and Rs40,000 through 16 field offices of the State Bank of Pakistan (SBP) Banking Services Corporation, and branches of six commercial banks; including National Bank of Pakistan, Habib Bank, United Bank, MCB, Allied Bank and Bank Alfalah, the notification added.
Furthermore, the discontinued bond can also be replaced with Special Savings Certificates/Defence Savings Certificates and will only be encashed by transferring the proceeds to the bondholder’s bank account.
On December 30, the government had discontinued Rs25, 000 prize bonds from circulation, according to a notification issued by the Finance Division.
The State Bank of Pakistan had issued a circular regarding conversion the redemption and encashment of Rs. 25,000 denomination National Prize Bonds and Premium Prize Bonds.
The investors will not be able to encash or redeem the Rs25, 000 prize bond after May 31, 2021. Cash payment for encashment of cited bonds is not allowed. However, the bonds can be converted to Premium Prize Bonds, Special Saving Certificates, Defence Saving Certificates or encashed at face value.
The conversion to certificates can be done through sixteen field offices of the State Bank of Pakistan or at branches of six authorized commercial banks.
The withdrawal had reportedly been done to address the Financial Action Task Force’s concerns over money laundering and terror financing and to tighten the noose around tax evaders.
The government also discontinued the Rs40,000 standard prize bonds in June 2019 on the same grounds and offered similar alternatives to investors. The government is instead offering Premium Bonds, which have to be registered in someone’s name.
