Banks Must Settle Prize Bonds Same Day

The State Bank of Pakistan (SBP) has directed all authorised commercial banks to settle Premium Prize Bond (PPB) sale transactions with SBP BSC Karachi on the same day, introducing a revised mechanism aimed at improving reporting and settlement efficiency.

The instructions were issued through CMD Circular No. 22 of 2026, dated August 6, 2026, and addressed to the presidents and chief executives of all authorised commercial banks.

According to the circular, the central bank reviewed the existing mechanism for reporting Premium Prize Bond sales and introduced updated procedures for the settlement of daily transactions.

Under the revised system, banks must settle all PPB sale proceeds with SBP BSC Karachi on the day of the transaction. Banks will be required to report their sales through the Direct Access Portal (DAP) within the prescribed timelines.

Based on the daily sales reported by each bank, SBP BSC Karachi will debit the corresponding amount from the bank's account.

Banks that fail to settle PPB sale proceeds on the same day will be required to pay "use of funds" charges for the period of delay. These charges will be calculated using the SBP Overnight Reverse Repo (Ceiling) rate applicable on each day of the delay.

SBP BSC Karachi will calculate and recover the applicable charges by debiting the concerned bank's account, with a corresponding credit made to Central (Non-Food) Account No. 1 under Account Head C02247.

The SBP further clarified that if profit or prize money is incorrectly paid because a bank fails to report, delays reporting, or misreports sale, encashment or transfer transactions, the concerned bank will be responsible for the entire amount wrongly paid, subject to adjustment of income tax where applicable.

The central bank stated that all other existing instructions relating to Premium Prize Bonds will remain unchanged.