prize bond ban in pakistan You can no longer buy new National Prize Bonds worth Rs25,000 - Prize Bond Pakistanbuy Online The State Bank of Pakistan has banned the sale of old Rs40,000 Prize Bonds Understanding the Prize Bond Ban in Pakistan: What You Need to Know

Prize Bond Pakistanbuy Online The landscape of financial instruments in Pakistan has seen significant shifts concerning Prize Bonds.Govt stops selling prize bonds of Rs7,500, Rs15,000 In recent years, the government has implemented various measures, leading to a ban on the sale and, in some cases, the encashment of certain denominations. This article delves into the reasons behind these decisions, the affected denominations, and what bondholders need to know to navigate these changes.

Entities Involved and Legal Framework:

The regulatory authority for National Prize Bonds in Pakistan rests with the State Bank of Pakistan (SBP) and the Central Directorate of National Savings (CDNS). These bodies oversee the issuance and management of these financial instruments. The prohibition of unauthorized activities is enforced under Section 489G of the Pakistan Penal Code 1860, which criminalizes the sale of prize bonds by unauthorized entities or the sale of documents that resemble prize bonds. This legal backing is crucial in preventing fraudulent activities and ensuring the integrity of the prize bond market.In case the bond holder desires

The Evolving Ban on Prize Bond Denominations:

The prize bond ban in Pakistan has not been a single event but rather a series of discontinuations affecting specific denominations. This phasing out is often linked to broader economic policies and international financial regulations.

* RsWhy Pakistan declare a ban on 7500 and 15000 prize bonds. 40,000 Denomination: As early as mid-2019, the State Bank of Pakistan banned the sale of old Rs. 40,000 Prize BondsThe government of Pakistan hasrecently banned certain prize bondsdue to their alleged involvement in illegal activities.. This move was explicitly aimed at curbing the "whitening of black money" through prize bonds. The government decided to ban Rs. 40,000 denomination prize bonds to enhance transparency in financial transactions. The deadline for encashment of these bonds was initially set for March 31, 2020, but extensions were provided in some cases.

* RsCentral Directorate of National Savings (CDNS) has initiated the RegisteredPrize BondsScheme called PremiumPrize Bonds(Registered). 7,500 and Rs. 15,000 Denominations: In April 2021, the government announced that prize bonds of Rs. 7,500 denomination shall not be sold with immediate effect. Simultaneously, the Rs. 15,000 denomination bonds also faced discontinuationNew Initiatives. This decision was partly influenced by the need for Pakistan to comply with the requirements of the Financial Action Task Force (FATF), which necessitates stricter controls on financial flows to combat money laundering and terrorism financingInstructions to Banks ; Withdrawal of Rs.7500, Rs.15,000/- & Rs.40,000/- denomination NationalPrize Bonds(Bearer) from Circulation · Notification ; Withdrawal ....

* Rs. 25,000 Denomination: The Rs. 25,000 denomination prize bonds also fell under the scrutiny, with the government deciding to discontinue the sale of Rs.Govt discontinues Rs25,000 bonds 25,000 denomination prize bonds in phases.Govt discontinues Rs25,000 bonds Notifications were issued in late 2020, ceasing the sale of new bonds of this value.Government ofPakistanhas extended the last date for encashment of NationalPrize Bondsof Rs. 40,000, Rs. 25,000, Rs. 15,000 and Rs. 7,500 ... Those who held these bonds were given a stipulated period, such as until May 31, 2021, to encash or convert their savingsWhy Pakistan declare a ban on 7500 and 15000 prize bonds. The decision to discontinue these bonds addresses concerns about their potential misuse in illicit financial activities.

* Rs. 7,500, Rs2020年12月4日—ISLAMABAD:The federal government has decided to discontinue Rs25,000 denomination prize bonds. The move is aimed at addressing concerns of .... 15,000, Rs. 25,000, and Rs. 40,000 Denominations: More comprehensively, the government has discontinued the sale of national prize bonds of denominations Rs2019年6月20日—40,000Prize Bonds(Bearer) need to be registered Up to 31st March, 2020 and any of the aforementioned opportunities can be availed for the .... 40,000, Rs. 25,000, Rs. 15,000, and RsGovt decides to discontinue Rs25,000 prize bonds. 7,500Govt bans Rs40,000 prize bond to curb whitening of black .... This coordinated effort underscores a strategic shift away from bearer prize bonds towards more trackable financial products.

Encashment Deadlines and Important Considerations:

For holders of the discontinued prize bonds, understanding the encashment and redemption deadlines is crucial. The SBP sets December 31 as the deadline for prize bond redemption, although this date has been extended multiple times for various denominations since 2021Prize BondsinPakistanare issued in proper series, and every series is limited to 1,000,000 bonds (one million numbers). Every draw is held quarterly, however .... For example, the last date for the redemption of National Prize Bonds of Rs. 7,500, RsGovt bans Rs40,000 prize bond to curb whitening of black .... 15,000, Rs. 25,000, and RsPrize Bonds. 40,000 issued by the Government of Pakistan was extended to December 31, 2024. These bonds can be returned or exchanged.

It is important for bondholders to be aware that prize bonds are not eligible for payment if the same are less than half, forged, or deliberately cut, mutilated or tampered. Moreover, the Lahore High Court (LHC) has upheld a six-year time limit for claiming prize money on prize bonds, a rule that applies to prize winnings rather than the redemption of the principal amount of discontinued bonds.

The Future of Prize Bonds:

While certain denominations have been phased out, the concept of prize bonds is not entirely obsolete in Pakistan. The Central Directorate of National Savings (CDNS) has initiated a Registered Prize Bonds Scheme called Premium Prize Bonds (Registered)2020年12月11日—“New NationalPrize Bondsof Rs25,000 denomination shall not be sold with immediate effect,” read a finance ministry notification of December 9.. This signifies a move towards more secure and registered instrumentsPrize Bonds Draw Schedule, 2026​​As per Govt. Policy, Rate of Tax is 15% of prize value for Filers, and 35% of prize value for Non-Filers.. It is also anticipated that CDNS will soon offer Digital Prize Bonds, where prize money will be directly credited to customers' accounts, reducing operational costs and enhancing convenience.

The Prize Bond Draw Schedule, 2024 and subsequent years will continue to feature draws for currently available denominations, with specific tax rates applied to prize winnings: 15% for filers and 35% for non-filers.

In conclusion, the prize bond ban in Pakistan is a multi-faceted policy aimed at enhancing financial transparency, curbing illicit activities, and aligning with international anti-money laundering standards. While some denominations have been discontinued, the government is exploring new, more secure avenues for savings and investment through registered and digital prize bonds.Soon CDNS will offer DigitalPrize Bondsas well and the prize money will be directly credited to customers' account. This will reduce expenditure on ... Holders of discontinued bonds must remain vigilant about encashment deadlines and procedures to safeguard their investments.