New System Introduced for Premium Prize Bonds, Banks Directed to Settle Funds Daily
KARACHI: The State Bank of Pakistan (SBP) has introduced a new system for the sale of Premium Prize Bonds and issued important instructions to all commercial banks regarding daily settlement of funds.
According to details, the SBP has directed commercial banks to settle the proceeds from Premium Prize Bond sales on the same day.
In a circular, the central bank said the new mechanism had been introduced after reviewing the existing procedure for reporting Premium Prize Bond sales transactions.
Under the new system, banks will report details of Premium Prize Bond sales through the Data Acquisition Portal within the prescribed time. The SBP Banking Services Corporation will then deduct the reported sale proceeds from the relevant bank account on a daily basis.
Charges for Delayed Settlement
The SBP clarified that if a bank fails to settle the sale proceeds on the same day, it will be required to pay charges for using the funds during the delay.
The charges will be imposed for each day of delay according to the SBP’s overnight reverse repo (ceiling) rate.
The calculation and recovery of these charges will be carried out by the SBP Karachi Office. The amount will be deducted from the concerned bank’s account and deposited into the Central (Non-Food) Account.
Banks Responsible for Incorrect Reporting
The central bank further clarified that banks will be fully responsible if incorrect, delayed or incomplete reporting of sale, encashment or transfer transactions results in the erroneous payment of profit or prize money.
Where applicable, adjustments will be made in respect of income tax.
The new mechanism is aimed at improving the reporting and settlement process for Premium Prize Bond transactions and ensuring timely transfer of sale proceeds to the central bank.
