According to reports, the State Bank of Pakistan (SBP) has decided to discontinue the Rs 25,000 national prize bonds with immediate effect.
If you currently have this particular bond, you have till May 2021 to avail one of three choices that are the option to encash, redeem, or convert. You can cash it any time, convert it into either a Special Savings Certificate or Defence Savings Certificate or convert it into a Premium Prize Bond.
According to sources, this change is based on a 27-point Financial Action Task Force (FATF) action plan to improve the anti-money laundering and terrorist financing mechanism in Pakistan.
There will be stages while in the withdrawal of the prize bonds. The Rs 25,000 bonds will be transformed into prime bonds for payment in the first round, whose registration process will begin later this month.
Following that, the Rs 15,000 and Rs 7,000 denomination prize bonds will be registered.
Meanwhile, regarding this, all prize bondholders will be obligatory to submit a copy of their CNICs with a special form allotted by the Central Bank of Pakistan.
In addition, instead of doling it out in cash, the award on Rs 25,000 bonds will be transferred directly to the holders’ account.
The notification also stated that to get the prize money the person will have to submit the prize bond and give a copy of their CNIC to the SBP.
Apart from Rs. 25,000 prize bonds, State Bank also discontinued the new issuance of Rs. 40,000 prize bonds back in February 2019.