Banks required to settle prize bond sales daily

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A file photo of prize bond. —Dawn/file
A file photo of prize bond. —Dawn/file

KARACHI: The State Bank of Pakistan (SBP) has decided that banks will settle all Premium Prize Bonds (PPBs) sale transactions on the same day, said a circular issued on Thursday.

The SBP has reviewed the prevailing mechanism for reporting PPB sale transactions and decided to make changes to it.

“The settlement mechanism will involve reporting of sale transactions of PPBs through DAP (Data Acquisition Portal) as per the prescribed timelines,” said the circular.

The SBP Banking Services Corporation (SBP BSC) will debit the account of the bank based on the amount of sale reported by the bank concerned on a daily basis.

“Any bank failing to settle the proceeds of sale transactions on the same day shall be liable to pay use of funds for the period of delay, calculated at the SBP overnight reverse repo (ceiling) rate prevailing on each day during such period,” said the circular.

The SBP said the Karachi office will be responsible for calculation and recovery of use of funds from the bank by debiting their account per contra credit to Central (Non-Food) Account.

Additionally, in cases where profit or prize money is paid erroneously due to non-reporting, delayed reporting, or misreporting of sale or encashment or transfer transactions by a commercial bank, the concerned bank will be liable for the gross amount so wrongly paid, subject to adjustment of income tax, if so possible, said the circular.

Published in Dawn, August 7th, 2026

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