Frequently Asked Questions on Prize Bond

You want to ask questions about prize bonds, so I am share with you some frequently asked questions prize bond.

Questions relating to claims of prize money of winning prize bonds:

What are the guidelines for application forms of all denominations of Prize Bonds?

Answer: The claim of prize money declared on winning prize bond can be lodged at any SBP BSC field office on the prescribed claim form, which is available at the help desk free of charge. The duly filled form should be submitted along with the following:

1. Copy of valid CNIC
2. Winning prize bond (original) duly signed by the applicant

• Copy of the winning prize bond duly signed by the applicant

What are the general objections raised on prize money claim?

Answer: To fill in the form in all respect correctly i.e. Bond numbers, the name of the claimant, date of draw, date of issue etc.

Why can the genuineness of prize bonds not be checked at SBP BSC field office?

Answer:  Bonds are  initially scrutinized  at  SBP  BSC  field offices  by the counter staff  imparted with necessary training from PSPC. However, prize money of winning prize bonds equivalent to one million and above are essential to be sent to PSPC for genuineness verification due to huge prize money involved.

Why the face value and prize money of the defective prize bonds are paid separately?

Answer:  Face value  against  Defective prize  bonds is  paid after passing  thereof by authorized officer whereas the Payment of prize money is paid as usual.

Should we claim prize money in our own name or sell it to a broker?

Answer: Prize money should be claimed by the bearer.

Why is the date of the issue important for any claim of prize money?

Answer: Only those prize bonds qualify for prize money, which has been purchased two months prior to their respective draw.

Whether a prize bond deposited with the application for prize money is returned to the claimant?

Answer: Prize Bonds winning prize money below Rs. 10,000/- are returned to the claimants. For prize money of Rs. 10,000/- and above, the bonds are retained and their face value is paid to the claimant.

Can prize money be claimed for a prize bond whose receipt/ payment order is lost?

Answer: Yes, subsequent to the fulfillment of prescribed conditions.

How can a person claim prize money?

Answer: Please refer to Section A Q1.

Why rarely repeated signatures obtained on claim form in case there is minor difference in signatures with that of CNIC?

Answer: To safeguard the interest of the Bank as well as claimant, proper identification of claimant is essential.

What is the procedure of obtaining prize money claim and from where it can be claimed?

Answer: The claim form is submitted at the respective counter of any office of SBP BSC (Bank). Prize money up to Rs. 18,500/- is paid over the counter (subject to clearance of bond) the same day (from 30th Draw and onward) after deduction of prevailing withholding tax as levied by Government of Pakistan. Prize money over Rs. 18,500/- is given through payment order only by the date given to claimants for collecting the prize money. Prize money upto Rs.1250/- can also be claimed at commercial banks and National Savings Centers.

How many days are required for settlement of prize money claim?

Answer: The number of days required for claim settlement of prize money are appended below:

Amount                   Number of days

Upto Rs.18,500/-                    same day(30th draw & onward) Upto Rs.185,000/-                  10 working days
Upto Rs.500,000/-                  15 working days
Above Rs.500,000/-                20 working days

Are there any charges of prize money claim form?

Answer: No.

After how many days of draw prize money claim can be lodged?

Answer: The claim can be lodged usually after 3 or 4 working days from the date of draw and within six years from the date of relevant draw

Whether claimant can obtain payment of prize money through an authorized person?

Answer: It depends on discretion of competent authority of the field offices.

Can we claim prize money of damaged bond?

Answer: Yes. (Subject to clearance under rules)

Why payment of prize money claims exceeding Rs.7500/- are not paid at SBP BSC Field Office counters?

Answer: All prize money claims are paid over SBP BSC Field Office counters.

Reasons for time lag on prize money?

Answer: Confirmation of genuineness of the bond from PSPC and concerned Public Debt Office (PDO).

Up to what period prize money can be claimed?

Answer: Prize money can be claimed within six years from date of the relevant draw.

When is the amount of prize money is paid?

Answer: The prize money claim can be lodged usually after 3 or 4 working days from the date of draw and within six years from the date of relevant draw. Prize money up to Rs.18,500/- is paid on same day (from 30th Draw onwards) at all SBP BSC Offices.

Whether one prize bond winning prize money two times in different draws will be paid prize money two times on the same date or otherwise?

Answer: Claim against prize bond winning in two different draws can be lodged only at the same time against two separate claim application by the holder within the period of Six(06) years from the date of its relevant draws.

Questions relating to the Draws of prize bonds:

What is the procedure of Prize Bonds draw? Is the process of drawing fair and transparent?

Answer: Prize bond draw is held by a committee constituted by CDNS and open to general public. WinningQ prize bonds are drawn through Hand operated draw machine, which is operated by special children in  front of Committee members and general public attending the draw ceremony. Draw machine is also checked by the general public before the start of the draw.

Why the small investors don’t win prize and big prizes goes to big investors?

Answer: Big investors invest in huge amounts and buy more prize bonds; therefore their probability of winning prize money is greater than the individuals who purchase a single prize bond. However, the draw is held separately for each prize and a small investor can win big prizes.

Why the State Bank of Pakistan does not stop the payment of prize money against prize bond reported lost?

Answer: Prize bond is a bearer instrument. Its ownership belongs to the holder of the instrument just like currency notes.

Whether one can attend draw ceremony?

Answer: Yes, general public may also attend the prize bond draw ceremony on production of original CNIC.

Is there any way to ensure that the prize bond purchased would win a prize?

Answer: No.

Why one cannot get the prize that purchased prize bonds in shut period when the number of prize bond was included in the draw and won a prize as well?

Answer: Refer Section A Q1

Why the prize money on the winning number is not paid very next day?

Answer: Due to preliminary preparation of books for official purposes.

How many numbers of Prize Bonds are in a series?

Answer: One less than a million i.e. 999,999 pieces

Questions relating to Tax Matters of prize bonds

How much tax is deducted from prize money?

Answer: As per Federal Board of Revenue, WHT @ 15% irrespective from the date of draw is deducted from prize winning money of prize bonds.

Whether an income tax payee is exempted from withholding tax on prize money claim?

Answer: No.

Is 15% Income tax on small prizes not discouraging for small savers?

Answer: As the tax is deducted on the prize money only and not on the principal amount, therefore it is   not discouraging to the small investors.

Questions relating to Transactions of prize bonds:

From where we can get Prize Bonds?

Answer: Prize bonds can be purchased and encashed in any quantity at all field offices of SBP BSC  (Bank), National Saving Centers and designated branches of commercial banks.

Why the rate of prizes is fluctuated?

Answer: Due to Government (Ministry of Finance – CDNS) policy and revision of rate of interest, rates of prizes are fluctuated accordingly.

Why the number of prizes has reduced whereas total number of prize bonds has increased?

Answer: Number of prizes also increased. Numbers of Prize Bonds are increased to make the rate of  return compatible with mark up prevailing in the money market.

Is there any limit on purchase of Prize Bonds?

Answer: No.

What is the encashment procedure?

Answer: To present original prize bond at the counters of SBP BSC Offices/Commercial Banks/National Savings Centers and obtaining face value thereof.

Are the prize bonds sold by commercial banks/ National Saving Center are genuine?

Answer: Yes they are the authorized dealers.

Can prize bond be encashed any time after their purchase?

Answer: Yes.

When the Draw List is available to the general public?

Answer: Official draw list is available on the next day of the draw which can also be downloaded from  SBP BSC and CDNS Website.

Procedure for encashment of defective/ mutilated/ decipherable prize bond?

Answer: Claim on the prescribed form for the recovery of value shall be dealt with under the Prize Bonds Refunds Rules, 1963. Mutilated/defaced bonds (if presented more than half portion of such bond along with claim form) are passed by an authorized officer on the same day for payment, if otherwise in order while claim bonds are paid (if approved) within three working days.

From where I can get the draw schedule?

Answer: Draw schedule is displayed at the field offices, official website of Central Directorate of National Savings and at SBP website

What is Shut Period?

Answer: Shut period means a period of two months preceding the date of draw of a particular denomination.

Why fresh prize bonds are not issued during sale period?

Answer: Fresh bonds are issued when the stock of re-issuable bonds is fully utilized/exhausted.

Is there any institution, other than SBP BSC (Bank) that offers sale/encashment of the prize bonds?

Answer: Yes. National Saving Centers and commercial banks.

What is the role of SBP BSC (Bank) in the Prize Bond sale/encashment?

Answer: As an agent to CDNS, SBP BSC is responsible for management of the scheme in all respect.

Are prize bond numbers sold to the customers of their own choice?

Answer: No

Is there any deduction against refund of face value of defective Prize Bonds?

Answer: No.

Can we exchange bonds at any bank/ post office?

Answer: Bonds can be exchanged at designated branches of Commercial Banks only.

Can we exchange old denomination bonds?

Answer: No

In case of theft can payment be stopped?

Answer: No. Prize bond are bearer instruments.

Can we get full value of damaged bond?

Answer: Yes, if the bond is more than half and otherwise in order

Why the bonds purchased during shut period are not included in subsequent draw?

Answer: Due to minimum holding period of two months for all denominations of National Prize Bonds as per Prize Bonds Rules, 1999.

If the Prize bond is stolen, could I get duplicate prize bond?

Answer: No. Prize bonds are bearer instruments and whoever is holding the prize bond is the owner of the instrument and can claim prize money.

How much time is taken to issue a new prize bond?

Answer: New prize bonds are issued on immediate basis over SBP BSC Field Office counters.

What is the life of prize bond?

Answer: The face value of prize bond, lawfully issued by the authorized dealers, is repayable at any time till a particular denomination of prize bond is not demonetized or canceled by the Federal Govt./State Bank of Pakistan. In such case the holders of the bonds are given sufficient time to exchange the cancelled bonds.

How To Check Prize Bond Is Original or Fake

Questions relating to Basics of prize bonds (Misc):

How many draws are held in a year?

Answer: Four draws of each denomination (Rs. 100/-, Rs.200/-, Rs.750/-, Rs.1,500/-, Rs.7,500/-, Rs.15,000/-, Rs. 25000/- & Rs.40,000/-) i.e. 32 draws held at our field offices as per draw Schedule issued by CDNS.

Who prints Prize Bonds?

Answer: Pakistan Security Printing Corporation (PSPC), Karachi, prints Prize bonds of all   denominations with the approval of Govt. of Pakistan.

Who holds the Prize Bond Draws?

Answer:  The  Committee constituted  by  CDNS  consisted upon  officials of  SBP  BSC, Local/Regional Directorate of National Savings and members from local Chamber of Commerce & Industry hold the Draws.

What is the purpose of Prize Bonds scheme?

Answer: To encourage public investment. It is a source of domestic borrowing for Government.

What types of prize bonds are not eligible for refund or face value?

Answer: Prize bonds are not eligible for payment if the same are less than half, forged or deliberately cut, mutilated or tampered.

What is the status of draws held before November 15, 2000?

Answer: Separate draw for each series of a denomination was held before November, 2000. Now the draw is held under the Single Common Draw System.

What is the open market rate of Prize Bonds?

Answer: This is an illegal parallel market of prize bonds which runs outside the bank’s premises which does not fall under SBP BSC Purview.

Whether it is in accordance to Sharia principles?

Answer: Best known to the Sharia Scholars/ concerns

Is the prize-winning list available with brokers is authenticated?

Answer: No.

Is Prize Bond a registered or Bearer instrument?

Answer: Prize bond is a bearer instrument.

Why during the Shut Period Prize Bonds remain available for sale outside SBP BSC (Bank)?

Answer: SBP BSC Offices are not affecting the sale of prize bonds during shut period; however, some individuals purchase it before shut period and sale on premium in open market during shut period which is illegal.

Are these brokers authorized to deal in sale/ purchase of Prize Bonds?

Answer: No

What are the security features of a prize bond?

Answer: These bonds are printed in the offset process on SPL made paper & would carry the following security features:

In paper: (i) enlarge watermark, (ii) micro-printed security thread, (iii) invisible colored fiber.

In printing: (i) micro-printed tint in rainbow colour, (ii) guilloche patter, (iii) visible fluorescent rosette, (iv) invisible denomination print, (v) numbering in red fluorescent ink.

What is PSPC?

Answer: Pakistan Security Printing Corporation (PSPC) is a government organization that prints currency notes/prize bonds and other government securities.

Why the Prize bonds are sent to PSPC?

Answer: Chemically and by some sophisticated means as the tempering in bonds has become more scientific, therefore, Prize bonds are sent to PSPC for verification. If they are declared forfeited then action is taken against the claimant as per Bank’s rules.

What is C.D.N.S?

Answer: Central Directorate of National Savings, Ministry of Finance, Government of Pakistan is controlling/managing all government savings for the benefit of General Public.

What is Public Debt Office?

Answer: Public Debt Office (PDO), deals with securities issued by Government of Pakistan from time to time to raise debts enacted by Public Debt Act, 1944. Whereas it is expedient to consolidate and amend the law relating to Government Securities issued by the Government.

Why the prize bonds of Karachi Circle are not paid in a manner as a Lahore circle’s prize bond?

Answer: There is no difference between Karachi and Lahore circles. However, Lahore PDO also allow payment of prize money against bonds of Karachi PDO after confirmation.

Why the prize bonds of Karachi circle are sold at Lahore Office?

Answer: Only re-issuable bonds are entitled to be sold/encashed at any Center of any circle.

Why the prize bonds of old denominations were substituted with new ones?

Answer: Being a Government (Ministry of Finance) policy to introduce higher denomination Prize bonds having huge amount of big prizes.

What is the schedule of draw?

Answer: The Schedule of draw contains Draw No, Place & date of draw.

What are the various denominations and their respective prize money?

Answer: Presently eight (08) denominations of National Prize Bonds are in Circulation details of which are as under:

Whether fresh bonds of all denominations are available for sale irrespective of Shut period?

Answer: Yes but these bonds will be sold in the open period after exhaust of re-issuable bonds.

Why prize bonds are not issued in a series?

Answer: Fresh Prize Bonds are issued in series

What is the legal backing of Prize Bonds?

Answer: Guaranteed by Government vide Public Debt Act, 1944.

Why application form is received in duplicate?

Answer: No duplicate application form is required

Is every commercial bank authorized to encash/ sale the prize bonds to public and pay the prize money to the claimant?

Answer: All authorized commercial banks are allowed to make sale/ encashment of all denomination prize bonds. However, the banks are allowed to pay the prize money up to Rs. 1,250/- only and the prizes exceeding Rs. 1,250/- are dealt with at all field offices of SBP BSC (Bank).