State Bank of Pakistan Prize Bond Rules & Regulations

State Bank of Pakistan Prize Bond Rules & Regulations

The State Bank of Pakistan (SBP) governs all prize bond operations in the country. Understanding these rules is essential for every investor. In recent years, significant regulatory changes have transformed how prize bonds work, particularly the shift from bearer to registered bonds.

Key Regulatory Changes

Elimination of Bearer Prize Bonds

In a major policy shift, the SBP has discontinued bearer prize bonds of higher denominations. Bearer bonds, which could be held anonymously, were phased out to prevent money laundering and improve financial transparency. The following bearer bonds have been discontinued:

• Rs. 40,000 bearer bonds — Discontinued and no longer encashable
• Rs. 25,000 bearer bonds — Converted to registered or encashed by deadline
• Rs. 15,000 bearer bonds — Phased out completely
• Rs. 7,500 bearer bonds — Discontinued

Registered Premium Bonds

Rs. 25,000 and Rs. 40,000 Premium prize bonds are registered to the investor. The current Rs. 100, Rs. 200, Rs. 750, and Rs. 1,500 National Prize Bonds remain regular bearer denominations.

Current Prize Bond Denominations

National Savings currently lists the following prize bond denominations:

Important SBP Rules for Bond Holders

Purchase Limits

While there is no official maximum limit on the number of bonds an individual can hold, large purchases may trigger scrutiny under anti-money laundering regulations. Buyers must provide valid CNIC and source of income documentation for substantial purchases.

Encashment Rules

• Bonds can be encashed at any time at face value from SBP offices
• Prize winnings must be claimed within six years of the draw date
• Prize money is paid only through bank transfer to the registered holder's account
• Withholding tax is deducted at source on all prize winnings

Transfer and Succession

Registered prize bonds can be transferred to another person through proper documentation at SBP offices. In case of the holder's death, bonds can be transferred to legal heirs with a succession certificate from the court.

Compliance Requirements

Under current SBP regulations, bond holders must:

• Maintain an active CNIC linked to their bonds
• Update personal information if CNIC details change
• File income tax returns to benefit from lower withholding tax rates
• Report prize bond holdings in their wealth statement

Conclusion

Staying informed about SBP rules ensures your prize bond investments remain compliant and hassle-free. Read our National Savings guide, explore the history of prize bonds, and understand how draws work. Check results on PrizeBond.pro.