ISLAMABAD: The government on Thursday allowed the investors of Rs40,000 Prize Bonds (bearer) to register their bonds up to March 31, 2020.

In an announcement, the ministry of finance said the Economic Coordination Committee (ECC) of the cabinet had decided that holders of bearer Rs40,000 Prize Bonds could avail the option to convert their bearer bonds into Premium Prize Bonds registered through 16 field offices of the State Bank of Pak­istan (SBP) Banking Services Corporation and authorised bra­n­ches of six commercial banks — the National Bank of Pakistan, United Bank, MCB Bank, Allied Bank, Habib Bank and Bank Alfalah.

Also, the Rs40,000 bearer bonds can be converted to Special Saving Certificates (SSC) or Defence Savings Certificates (DSC) through 16 field offices of the SBP Banking Services Corporation, authorised commercial banks and National Savings Centres. The rate of return on the DSC and the SSC at present is 12.47per cent and 11.57pc, respectively.

Also, the bond holders can avail cash payment against encashment of Rs40,000 bearer bonds in their bank accounts. In case the bond holder desires to encash the bond, the encashment proceeds will be credited to the specified bank account of the holder. In this context, SBP and all banks will extend their maximum support to ensure the transfer of payments to the account of the holder.

The ministry said that Rs40,000 Prize Bonds (bearer) needed to be registered up to March 31, 2020, and any of the aforementioned opportunities could be availed for the purpose. “It is clarified that the investment of the bond holder is safe in any case”, the statement said.

It said that the ECC had decided that no further draw of Rs40,000 Prize Bond (bearer) would be held. However, all the prize money claims on the already held draws will be claimable within six years from the date of respective draw, as per the National Prize Bonds Rules, 1999.

The Rs40,000 Premium Prize Bond (Registered) had been launched with effect from March 10, 2017, by then finance minister Ishaq Dar. These prize bonds offer not only attractive prizes through quarterly draws but also pay reasonable profit through biannual coupon payments.

All the payments are made to the investor’s bank account through an automated system. Further, prizes on Rs40,000 Premium Prize Bonds (registered) are more attractive compared to bearer bonds, according to the ministry. The registered bonds are secure and not prone to forgery and theft, according to the ministry.

The finance ministry had already discontinued the fresh issuance of Rs40,000 bearer bonds from Feb 14 this year.

The announcement said that issuance, encashment and draws of bearer prize bonds of all other denominations would continue as per the exiting procedure, according to the National Prize Bonds Rules, 1999.

Published in Dawn, June 21st, 2019