The government has granted another extension of six months to the holders of Rs. 40,000 National Prize Bonds (NPBs) for conversion, replacement or encashment.
The State Bank of Pakistan (SBP) advised commercial banks to accept requests for conversion/redemption of Rs. 40,000/- NPBs till December 31, 2020.
In this connection, the Finance Division vide Notification No. F.16(3)GS-I/2014-797 dated June 30, 2020, has extended the last date for conversion/replacement/encashment of cited Prize Bonds till December 31, 2020.
SBP has reiterated that cash payments against the encashment of these bonds will not be allowed. However, the bondholder(s) shall have the following options for replacement/redemption:
- Conversion of Premium Prize Bonds (Registered)
- Replacement with Special Savings Certificate (SSC)/Defence Savings
- Encashment at Face Value into Bank Account only.
The head offices of commercial banks will solicit details of prize bonds physically held by each branch/regional office on December 31, 2020, and report a consolidated bank-wide position to the SBP BSC by January 2, 2021. Nil report is also required in case no prize bonds are held by a bank.
SBP has asked banks to disseminate necessary instructions down the line to all branches and concerned officials for information and strict compliance and all other instructions in this regard will remain unchanged.
Unregistered bearer bonds of Rs. 40,000 are to be completely discontinued as legal tenders from June 30th this year. This led to a massive withdrawal of investment from the bearer instrument as the total investment.
However, since the withdrawal of investment from bearer bonds was allowed only through prescribed mode, the money became part of the documented economy.