Rs. 40000 prize bond discontinued, What Should you do now?

The State Bank of Pakistan has banned the sale of old Rs 40000 Prize Bonds from these days (Tuesday).

The expiry date for encashment of those bonds is March 31, 2020, after that the bonds become vain in view that they could no longer be covered in attracts.

The SBP has also directed banks to prevent selling antique and unregistered Rs.40,000 Prize Bonds.

According to the State Bank, the bonds could be converted into Rs.40,000 Premium Prize Bonds and that they can also be converted into saving the certificate.

The government has given 9 Months Deadline to Register Rs. 40,000 Prize Bonds

The government gave a nine-month closing date to Rs. 40,000 denomination prize bonds holders to convert their saving units to either coins or in other securities.

Following the choice of the Economic Coordination Committee’s (ECC) of the cupboard, the holder of Rs. 40,000 denomination prize bond can gain from numerous centers in registering their bonds, in step with a press statement issued through the Finance Ministry right here.

However, ECC has decided that no similar prize bond draw of Rs 40,000 would be held, but, all the prize cash claims on the already held attracts may be claimed inside the duration of six years from the date of the respective draw, as in keeping with National Prize Bonds Rules, 1999.

The move is likely to deal with concerns of the global watchdogs, who’re suspicious approximately the parking of black cash thru those bonds. Pakistan is presently at the graylist of the FATF.

Rs 40,000 Bearer Prize Bonds can be converted to Premium Prize Bonds (Registered) via 16 subject offices of SBP Banking Services Corporation, and certified branches of six industrial banks i.E. National Bank of Pakistan, United Bank Limited, MCB Bank Limited, Allied Bank Limited, Habib Bank Limited, and Bank Alfalah Limited.

In addition, the statement said, Rs. 40,000 Bearer Prize Bonds holder can avail the opportunity to update the bonds with Defence Saving Certificates (DSC) or Special Saving Certificates (SSC) through the 16 discipline places of work of SBP Banking Services Corporation, authorized business banks, and National Savings Centres.

The Rs. 40,000 bond is the very best denomination prize bond, out of total 8 denominations, starting from Rs.100 to Rs. 40,000. There was Rs. Seventy-five-million first prize on the Rs. 40,000 denomination bonds.

People have invested over Rs. 950 billion in all varieties of prize bonds and over one-fourth of the full investments become within the Rs. 40,000 denomination bonds.

Rate of going back on DSC and SSC is very attractive, the announcement said including that currently, an annual charge of return on DSC is 12.47% whereas the annual (average) rate of return on SSC is 11.57%.

Furthermore, in case the bondholder desires to encash the bond, the encashment proceeds might be credited to the required financial institution account of the holder.

In this context, SBP, in addition to all the banks, would extend their maximum aid to ensure the switch of bills to the respective account of the holder.

The registered bonds are secure and not at risk of forgery and theft. Finance Division has already discontinued the fresh issuance of Rs. 40,000 bearer bonds w.e.f. February 14, 2019.