KARACHI – All commercial banks have been directed to settle the Premium Prize Bonds (PPBs) sale transactions on the same day with the State Bank of Pakistan (SBP) Banking Services Corporation (BSC), according on a latest circular.
The central bank has introduced a revised settlement mechanism for the issuance of Registered Premium Prize Bonds (PPBs) through commercial bank branches.
The revised procedure requires commercial banks to report the Premium Prize Bond sale transactions through the prescribed system within the specified timelines. Based on the reported sales, SBP BSC Karachi will debit the respective bank’s account on a daily basis.
The circular states that banks failing to settle sale proceeds on the same day will be required to pay “use of funds” charges for the period of delay. The charges will be calculated at the SBP Overnight Reverse Repo (Ceiling) rate applicable on each day of the delay.
SBP BSC Karachi has been assigned responsibility for calculating and recovering these charges by debiting the concerned bank’s account and crediting the designated Central (Non-Food) account.
The central bank also addressed cases involving incorrect payments resulting from reporting errors.
“Additionally, in cases where profit or prize money is paid erroneously due to non reporting, delayed reporting, or misreporting of sale or encashment or transfer transactions by a commercial bank, the concerned bank shall be liable for the gross amount so wrongly paid subject to adjustment of income tax, if so possible,” read the circular.
