Introduction:

This unit of state bank has started its working in 1960. Formally the national prize bond
scheme and the national saving certificate schemes are owned by Central Directorate of
National Savings (CDNS), but due to lack of such large infrastructure. Human resource and
many other prerequisites the National Saving Centre solely is not able to operate such
schemes, in order to facilitate National Saving Centre SBP work as an agent on behalf of
foresaid organization. It is noteworthy that rules and regulations are purely defined by
National Saving Centres and policies and instructions regarding such schemes as well. At
present SBP is operating majorly two schemes.
National prize bond schemes
National saving certificates schemes
National prize bond scheme:
Prize bond is financial instrument which is bearer in nature and the holder of this
instrument is considered the owner of the instrument. It is a type of investment which does
not give any interest payment. Instead there are two types of possibilities involve in it, the
owner can have the prize money by winning or if he did not win any prize then he can have
the face value of the bond only. The prize bondsare available in different denominations.
Eight different denominations are currently available in market;
Prize bonds of Rs 100, 200, 750, 1500, 7500, 15000, 25000 and 40000
Objective:
This scheme has been started with the two basic objectives
To encourage the saving habit in the people
To generate funds for government projects
One of the major source to raise public debt








Denomination
(Rs)

First Prize 2nd Prize 3rd Prize
No. Amount
(Rs)
No. Amount
(Rs)
No. Amount
(Rs)
100/- 01 700,000 03 200,000 1,199 1,000
200/- 01 750,000 05 250,000 2,394 1,250
750/- 01 1,500,000 03 500,000 1,696 9,300
1,500/- 01 3,000,000 03 1,000,000 1,696 18,500
7,500/- 01 15,000,000 03 5,000,000 1,696 93,000
15,000/- 01 30,000,000 03 10,000,000 1,696 185,000
25,000/- 01 50,000,000 03 15,000,000 1,696 312,000
40,000/- 01 75,000,000 03 25,000,000 1,696 500,000

These bonds are issued in series and every bond has unique serial number which is
automatically included in the computerized balloting. Each series consist of 1,000,000 bonds.
Suppose A series consist of bonds start from 0000001 and end with 1000000.
Sale of national prize bonds of all denominations is carried out through the 16 field
offices SBP BSC, authorized branches of scheduled banks and national savings centres of
CDNS. No return is paid on face value of prize bond.
Draws are held on quarterly basis; the draws are held under common draw method and the
numbers of prizes are same for each series. It means that if 50 series of Rs.200 Prize Bond are
in circulation. Then on each draw we have 50 winners of 1st prize and 150 winners of 2nd
Prize and so on
Issuance Process:
Issuance process of the Prize Bonds is as follows;
1-Printing and Supply of the National Prize Bonds:
Prize Bonds are printed by the Pakistan Security Printing Corporation (PSPC) in such
forms which are approved by the Central Government in consultation with the State Bank of
Pakistan. The PSPC will ensure that paper, ink and material which are used for printing of
Prize Bonds such as are not easily available to facilitate forgery.
2-Delivery of Prize Bonds by the Pakistan Security Printing Corporation
Limited:
The Currency Management Department decide the demand of prize bonds and give
instructions to the PSPC to print the require amount then. The PSPC after completing the
printing, move those bonds to Public Debt Offices situated in Lahore and Karachi. The
Public Debt Offices will be responsible for the supply of Prize Bonds to other Offices of the
State Bank of Pakistan under their jurisdiction. Lahore office covers the SBPs of Punjab,
Khaiberpakhtunkhawa and AJK. Karachi office covers the SBPs of Sindh and Baluchistan.
Sale of national prize bonds of all denominations is carried out through the 16 field
offices SBP BSC, authorized branches of scheduled banks and national savings centres of
CDNS. No return is paid on face value of prize bond.
Also there are 4 Types of operations are performed on cash counter
1) Reissuance of prize bonds and cash needy customer come with prize bond and return
the bond and receive cash on counter
2) Those prize bonds which are received by state bank are sold to the general public
3) Fresh prize bonds are issued
4) Prize bonds which are in miserable conditions or wear and tear, defective are also
received. The general acceptability is that your denominations must be 50% present
while presenting on cash counter. special procedure is adopted in such cases,


Draw Schedule:
Draw schedule is prepared/Announced by National Savings/ Ministry of Finance
Government of Pakistan. Prize money and number of prizes is decided by the National
Savings/ Ministry of Finance Government of Pakistan. Each denomination draw is held on
1st and 15th of each month. Only those bonds can be declared successful which were sold
two months prior to the draw date. National Savings generate prize money of the Bonds by
closing the sale of the Prize Bonds for 2 months of that denomination and that 2 months
period is called Shut Period.
Draw Procedure:
The draws of the national prize bond are held through the simple method of draw. The
SBP BSC Invites Special children to operate the draw machine, first selectednumber will be
1
st
prize and next consecutively up to the number of prizes of a denomination. That selected
number will be considered prize of each series of that denomination.
Tax:
Tax deduction rate is 10% but from 2nd July 2013 the rate has been increase to 15%
so the draw number upto 54 are charged 10% and from 55th draw number tax charges are
15%
SALE OF PRIZE BONDS:



The period of no sale is also known as shut period.

Procedure for the claim of small prize money:
The prize bond whose wining value is equal to or less than 18500 is called small prize
money these prize bonds are dealt by the cash department or payment of these prize bonds are
made at the same time at counter these include 3
rd
prizes of Rs 100, 200, 750, 1500. The prize
bond whose winning prize is less than 20000 is return to the claimant.
The procedure of bond claim is different for different amounts of prizes. But the basic
procedure for the prizes up to 18500 is as follows

draw of one denomination on
the first day of the month
after draw there is the sale and
encashment of that dnomination
remain open for one month
afer one month there is no sale
of that denomination for two
months
after two months there is again
the dreaw of that particular
denomination


Procedure for the claim of big prize money:
The procedure is different for the prizes of value more than 93000. The payments of
these prizes perform through account. The procedure for payment through account involves
the following steps.


the claimant goes to the State Bank
along with the winning bond and the
copy of cnic and bond from both sides
takes the PB 23 form from the
counter
fills the particulars
submit it to the cash counter
the cash counter verify the bond no.
,issue date etc
pay cash to the claimant along with
his bond

The senior assistant officer input the data in Globus in form PB 49. Also he is the one who
issued the receipt payment order no. Bond stamped from back side and then sent to OG2 who
Claimant goes to the bankig counter
of prize bond deptt.
he submits his bond along with the
copies of cnic and bond from both
side and PB 23 form
The banking counter then issues a
receipt slip to the claimant and asked
him to come after some days
These days are demanded for the
verification of the genuineness of the
bond
After that time the claimant goes to
the banking counter submits his recipt
and receives the payment order
He submits the payment order in his
bank
From that bank the cheque comes to
the State Bank for payment
After verification in the Public
accounts unit the account of the bank
in State Bank is credited
And further the bank credited the
customer account.
verify all the work of senior assistant and divide the bonds according to the regions they
belong. He also fills the form PB-59 which is an application to the relevant PDO for the
verification of the genuineness of the bond. This application consists of different codes and
each code contains 20 bonds. The PDO confirm the genuineness of the bond and the form of
letter is known as PB 60. Through this confirmation letter a confirmation PO number
generated then sent to audit department and signed by the ACM of audit department. After
the confirmation all the particulars of the bonds are saved in PB-62 form and through this
form a payment order is generated.Then the form number PB-55 sent to PAU for
confirmation after this sent to PDO after payment of face value PB-27 sent to PAU and PAU
mark against transfer of payment.
The verification period is different for different amount of prizes. For the prizes
93000-185,000 the confirmation period is 10 working days.
185,000-500,000 the confirmation period is 15 working days
500,000 and above the confirmation period is 20 working days

Saving certificates:
Along with the sale and encashment of prize bonds. SBP BSC also carries out the sale
and profit distribution of two of the national saving certificates. There are two type of
certificates available at the counter of SBP BSC
Defence saving certificate
Special saving certificate
Defence saving certificate:
The Government of Pakistan introduced Defence Savings Certificate scheme in the
year 1966. The scheme has specifically been designed to meet the future requirements of the
depositors. This is 10 years' maturity scheme with built in feature of automatic reinvestment
after the maturity. These certificates are available in the denominations of Rs.500, Rs.1000,
Rs.5,000, Rs.10,000, Rs.50,000, Rs.100,000, Rs.500,000 and Rs.1,000,000/=. The minimum
investment limit is Rs.500/-, however, there is no maximum limit of investment in this
scheme. These certificates are encashable at par any time after the date of purchase.
However, no profit is payable if encashment is made before completion of one year. The
same certificate can be reinvested for another time period however those certificates which
are purchased on or after 15-11-2010 cannot be automatically reinvested. However, other
better options are available for investment in National Savings Schemes
Eligibility for investment:
These certificates can be purchased by a
Single adult
A minor
Two adults in their joint names with the options of payable to the holders
jointly (Joint-A) or payable to either (Joint-B).
An adult can also purchase these certificates on behalf of a single minor
Two minors jointly or himself/herself and a minor jointly.
Institutions may also invest individual funds such as
Pension
Gratuity
Superannuation
Contributory provident funds and trusts etc.
Procedure for the purchase of the certificates:
These certificates can be purchased from any National Savings Centre
(NSC), Pakistan Post Offices (PPO), Authorized branches of Scheduled Banks and
State Bank of Pakistan (SBP) by filling in a prescribed form called SC-1, which is
available at all the above offices of issue free of cost.
Documents required:
SC -1 form
A copy of the Computerized National Identity Card (CNIC).
In case of a foreign national .A copy of the Passport is required to be
attached with the application form.
Mode of payment for the purchase:
These certificates can be purchased by depositing cash at the issuing office
or by presenting a cheque. The certificates shall immediately be issued on receipt of
cash. However, in case of deposit through cheque the certificates shall be issued
from the date of realization of the cheque after receipt of the clearance advice.
Return on investment:
In this scheme the profit is paid on maturity or encashment for completed
years. These rates are effective from 1st July, 2013. The average compound rate of
return on maturity presently works to 10.36% p.a.
Years Amount in Rs.

Rate of return
10.36%
0 100,000
1 106,000/-
2 113,000/-,
3 121,000/-,
4 130,000/-,
5 140,000/-,
6 153,000/-,
7 170,000/
8 192,000/-,
9 224,000/-
10 268,000/-

Tax & Zakat Status:
Exemption of deduction of Withholding tax has been withdrawn with effect
from 01-07-2013 on profit of investment upto Rs.150,000 . The profit earned on
these certificates is subject of deduction of 10% withholding tax at source. The
Zakat is collected at the source.


SPECIAL SAVINGS CERTIFICATES:
Keeping in view the periodic needs of depositors, this three years' maturity scheme
was introduced in February, 1990. These certificates are available in the denomination of
Rs.500, Rs.1000, Rs.5,000, Rs.10,000, Rs.50,000, Rs.100,000, Rs.500,000 and
Rs.1,000,000These certificates can be purchased by
a single adult
a minor
two adults in their joint names with the options of payable to the holders
jointly (Joint-A ) or payable to either (Joint-B).
An adult can also purchase these certificates on behalf of a single minor
two minors jointly or himself/herself and a minor jointly.
Institutions may also invest individual funds such as pension, gratuity,
superannuation, contributory provident funds and trusts etc.
Along with these all the other particulars of this scheme is similar to that of defence saving
scheme except the profit is paid on biannual basis.
Profit calculation:
At prevailing rates, the profit is paid @ 8.80% p.a. for 1st five profits and @ 9.50%
p.a. for the last profit. However, if the profit is not withdrawn on due date it will
automatically stand reinvested and would be calculated for further profit on completion of
the next 06 months' period.