SBP mandates same-day premium prize bonds’ sale transactions settlement

KARACHI: The State Bank of Pakistan (SBP) on Thursday directed banks to settle all Premium Prize Bond (PPB) sale transactions with the SBP Banking Services Corporation (BSC) on the same day, warning that any delay would make them liable to pay charges for the use of funds during the period of delay.

The SBP has amended Standard Operating Procedures (SOPs) for issuance of Premium Prize Bonds (PPBs) through commercial banks and, after reviewing the prevailing mechanism for reporting PPB sale transactions.

According to SBP, now it has decided that all banks will settle all PPBs sale transactions on the same day with SBP BSC Karachi aimed to ensure the transparency.

The settlement mechanism will involve reporting of Sale transactions of PPBs through DAP as per the prescribed timelines. In addition, SBP BSC Karachi office will debit the account of the bank based on the amount of sale reported by the concerned bank on 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,” the circular said.

The SBP BSC Karachi office will be responsible for calculation and recovery of use of funds from the concerned bank by debiting their account per contra credit to Central (Non-Food) Account No. I against Account Head C02247.

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.

While, all other instructions on the subject will remain unchanged on for the PPBs, the SBP said.

Copyright Business Recorder, 2026