Govt Officially Issues Rules For Digital Prize Bonds

The Finance Division notified the new rules for digital prize bonds on Tuesday, aiming to promote better economic documentation, transparency, and accountability. This initiative comes as the government prepares to launch digital prize bonds, which will be transacted through a mobile application and credited directly to linked bank accounts or Central Directorate of National Savings (CDNS) accounts upon purchase. Under the new regulations, there will be no maximum limit on investment in the bonds. While the prize money will be subject to taxation, it will be exempt from Zakat. This paperless investment approach is expected to significantly reduce printing and logistical costs. The digital bonds will be registered in the buyer’s name, minimizing the risk of fraud. Additionally, the processes for buying, selling, and redeeming prizes will be streamlined for greater efficiency. This initiative is being implemented under the authority of section 28 of the Public Debt Act, 1944, and aims to mitigate risks associated with theft, loss, or damage. To facilitate public access, adult Pakistani citizens can purchase these bonds via the National Savings mobile app or other authorized CDNS channels, with payments made through linked bank or savings accounts. Prize money will be directly credited to the investor’s linked account, with quarterly draws scheduled. The draw schedule will be announced at the beginning of each calendar year. Investors will also have the option to nominate beneficiaries when purchasing the bonds, with the ability to modify or cancel nominations as needed. In the event of a bondholder’s death, the payment of the principal and any prize money will be made to the legal heirs according to the succession certificate issued under current law. If the total net payable amount does not exceed five hundred thousand rupees, payment will be made to the nominee(s) listed in the Digital Prize Bonds Gateway, upon providing a duly verified and attested copy of the Family Registration Certificate (FRC) issued by NADRA, along with an affidavit confirming the distribution of the received amount among all legal heirs according to their rightful shares. If the nominee is a minor, payment will be made upon the provision of a succession certificate. In cases where the nomination has ceased to be valid due to the nominee’s death or if no nomination was made, payment will also be made based on the succession certificate. The CDNS will develop procedures related to the sale, encashment, payment of prize money, and other related matters to ensure the effective implementation of these new rules.