Report on Prize Bonds and Other Unit of SBP BSC(Bank) Sukkur

STATE BANK OF PAKISTAN BANKING SERVICE CORPORATION (BANK)

INTERNSHIP REPORT ON NATIONAL PRIZE BONDS AND GOVERNMENT SECURITIES

SUBMITTED TO: SBP BSC (BANK) SUKKUR &Sukkur Institute of Business Administration

SUBMITTED BY: SALMAN SAEED SOOMRO MBA (FINANCE) SUKKUR INSTITUTE OF BUSINESS

ADMINISTRATION

Sukkur Institute of Business Administration: Salman Saeed Soomro 1

http://www.google.com.pk/imgres?imgurl=http://finance.kalpoint.com/images/stories/news/sbp_logo.jpg&imgrefurl=http://finance.kalpoint.com/highlights/business-news/sbp-amends-prudential-regulations.html&usg=__VZiUG22Ha0g5lCh3jVEc9ZAPVxY=&h=252&w=250&sz=18&hl=en&start=6&itbs=1&tbnid=Iqj_jFHTb9fiIM:&tbnh=111&tbnw=110&prev=/images?q=sTATE+BANK&hl=en&gbv=2&tbs=isch:1

http://www.google.com.pk/imgres?imgurl=http://foreverindus.org/picifap/data/media/11/Sukkur_Bridge-wasim.jpg&imgrefurl=http://foreverindus.org/picifap/details.php?image_id=130&usg=__-21Nzxm0b4zht12Bv0lz7OIqvOA=&h=333&w=500&sz=13&hl=en&start=7&itbs=1&tbnid=FK6j-OfWLUx8zM:&tbnh=87&tbnw=130&prev=/images?q=SUKKUR&hl=en&gbv=2&tbs=isch:1


Contents

Acknowledgement ---------------------------------------------------------------------------------------- 01

Introduction of SBP BSC (Bank) Sukkur and Its Units---------------------------------------------- 02

Government Financing and Its type ----------------------------------------------------------------------10

National Saving Scheme----------------------------------------------------------------------------------- 11

National Prize Bonds-------------------------------------------------------------------------------------- 13

Defence Saving Certificate-------------------------------------------------------------------------------- 24

Special Saving Certificate -------------------------------------------------------------------------------- 28

References --------------------------------------------------------------------------------------------------- 30



Acknowledgement

All thanks to Almighty ALLAH who has empowered my poured knowledge that made us

able to complete this report and made it possible. I would like to thanks management of

SBP BSC (Bank) Sukkur to appoint me as internee and giving me the opportunity to get

the practical exposure of banking sector. This report provides all the knowledge and

experience that I got during my internship in SBP.



State Bank of Pakistan Banking Service Corporation (Bank) Sukkur Field Office

Vision

“To develop SBP BSC (Bank) into a strong and dynamic institution, equipped with

efficient and professional human resources base having necessary technology, fully

capable of providing quality services to stakeholders and complementing State Bank of

Pakistan in achieving its objectives”.

Mission

“To maintain an efficient currency management system, provide effective banking

services responsive to changing environment so as to command trust and respect of our

stakeholders”.

History of Sukkur Field Office

SBP Banking Services Corporation (Bank), Sukkur is one of the field offices of SBP

Banking Services Corporation (Bank), which was created upon promulgation of

Ordinance-2001 as an independent subsidiary of the State Bank of Pakistan at Sukkur.

Sukkur city is the hub of three Provinces viz; Baluchistan, Punjab & NWFP. Sukkur city

is also very important place which covers small & medium enterprises, wide range of

agricultural commodities’ market and also dry and fresh fruits like Dates, Banana,

vegetables etc. As such SBP BSC (Bank), Sukkur is playing a curious role in the region.

SBP Banking Services Corporation, Sukkur Office enjoys a long history of central

banking since its inauguration in 1994. The office gets further importance and increased

responsibilities in terms of serving to the government departments. As a Field Office of

BSC, it is committed towards providing customer oriented banking services to

government, financial institutions and the public, management of currency and National

Savings Schemes and canalizing efficient operations of the payment system. The main

focus of the bank is aimed at bridging the gap between the central bank and it

stakeholders so that policies are made that strengthen the financial system and provide

and enabling framework for the financial industry that fosters economic growth.



Units of BSC (Bank) Sukkur Field Office

1- Internal Monitoring Unit (IMU)

2- Public Account Unit (PAU)

3- Treasury Cash Unit (TCU)

4- Deposit Account Unit (DAU)

5- Foreign Exchange Operations Unit (FEOU)

6- Development Finance Support Unit (DFSU)

7- General Services Unit (GSU)

8- Currency Management Unit (CMU)

9- Export Refinance Unit (ERU)

10- National Prize Bond Unit (PBU)

1- Internal Monitoring Unit (IMU)

The Internal Audit Department was established for the purpose of providing management

and the Audit Committee of the State Bank of Pakistan Banking Services Corporation

with reasonable assurance that the management control systems throughout the SBPBSC

(Bank) are adequate and operating effectively. Internal Audit provides an independent

and objective appraisal of activity for management and assuring them that risks are held

at bay. To this end the Internal Audit provides the management with analysis,

recommendations, counsel, and information concerning the activities reviewed. To

accomplish its threefold mission of Banking, Currency Management and Customer

Service, the Bank must maintain the confidence of its Stake Holders, Executives, Staff,

Public and SBP. Confidence in the institution is paramount if the Bank is going to

achieve its stated objectives. The Internal Audit Department provides valuable support in

maintaining the public's confidence by performing independent and objective reviews and

reporting to the Audit Committee and Managing Director on their findings so that

corrective actions or enhancements can be initiated. The Internal Audit Department

assists operating management in achieving Banks financial and operating goals by

evaluating controls to ensure systems function adequately, by identifying weaknesses,

and by providing recommendations. Through complete and unrestricted access to records,

property, and personnel, Internal Audit provides the Bank with an additional resource in



meeting these goals. With the support of Bank management and the Audit Committee,

the Internal Audit Department provides the highest quality of auditing services, thus

enhancing control at the Bank.

2-Public Account Unit (PAU)

SBP BSC (Bank) provides Banking Services to Government through PAU. PAU is

responsible for maintaining the account of Federal, Provincial, District and Zakat

accounts. Under section 21(1) of the SBP Act 1956 the Bank is obliged to accept money

for account of the Federal, and Provincial Government in Pakistan and to make payment

on their account and to carry out their exchange, remittances, and other Banking

Operations including management of Public Debt.

It provides data on the Government Accounts to the Accountant General Pakistan

Revenue, Pakistan Railway, and SBP on daily basis. The position of Government

balances is provided to Finance Department of SBP for submission of Government

Departments. Automation of business processes and online data entry has provided an

impetus of secured transmission and automated of updating of data, and because of this

integration among Field Offices System generated error free reports; client statement and

elimination of duplication of work have resulted in quality based banking services to

Government Departments. Another responsibility of PAU is the ZAKAT collection and

maintenance of its balances.

Type of Account

1- Drawing Account

When an Officer of a Government Department is authorized to draw funds from Bank

without limit such an account is called Drawing Account.

2- Assignment Account.

In case of certain Department, Accountant General Authorizes the bank is to open

Ledger Deposit Accounts in favor of the head of these Departments and Army unit

are called Assignment Account.



Main Units of PAU

a) Payment Unit

Payment on behalf of Government through instrument

Functions perform by Payment Unit

To keep specimen signatures of drawers/DDO’s records up to date

To maintain Cheques Series advice

Stop Cheques

To maintain schedule/advices

Pass cheques/Bills e.t.c.

b) Receipts Unit

This unit is responsible for keeping accounts of money paid into SBP BSC (Bank) for

credit to Government Account (Central and Provincial). All money that are tendered at

the bank for credit to Government Account should be accompanied by Treasury Challan

in the form of prescribed by the Government concerned are permitted to be deposited by

the member of the Public direct into the Bank for credit to Government Accounts Such

as: Income Tax and Sales Tax Deposits. All Challan require to be counter signed by

Treasury Officers or Head of the Government Department on whose account the amount

paid.

c) Clearing House

SBP BSC (Bank) among other things also acts as a Clearing House for Commercial

Banks who have to maintain Current Accounts with it. The SBP BSC (Bank) Offices

supervise the working of the Local Clearing House as all the important centers where the

Bank has established its offices through National Institutional Facilitation Technologies.



3- Treasury Cash Unit (TCU)

This unit is responsible for carrying all transactions, which are related to Cash on behalf

of Government, Commercial Banks, and Other Institutions.

Functions that are perform by TCU:

Physically receipts/payments on behalf of Government and Commercial Banks.

Sale/Encashment of National Prize Bonds.

Sale/Encashment of Coins.

Counters that perform the Functions of TCU

Coin Counter: Sale/Encashment of Coins

Government Counter: Receipts/Payment on behalf of Government

Exchange Counter: Exchange of Currency Notes

Defaced/Defective Counter: Exchange of Defaced/Defective Currency Notes

Banking Counter: Receipts/Payments on behalf of Commercial Banks through

instrument.

National Prize Bonds Counter: Sale/encashment of National Prize Bonds.

4- Deposit Account Unit (DAU)

The DAU is part of the Banking Service Corporation (BSC). The DAU is responsible for

maintaining the Bank’s Accounts and also provide the Remittance to Banks.

Types of services provided by SBP BSC (Bank) to Commercial Banks through its DAU

are:

a) Current Account

b) SBP Remittances Facility Schemes;

Current Account

SBP BSC (Bank) provides facility to other Banks to open current in SBP BSC (Bank)

without any charges. Current Account is maintained by DAU that is entrusted with the

work of opening and maintaining the Current Account of Schedule and Non-Schedule

Banks, Local Bodies and Other Foreign Banks.

There are two main reasons to open account in SBP BSC (Bank);

1- When they have excess amount above their holding capacity

2- For settlement of transactions with Other Banks or for Clearing purposes.



Remittances

In order to facilitate movements of funds from one place to another place, SBP BSC

(Bank) provides Remittances facilities through, Demand Draft, Mail Transfer, Bank

Draft, Government Draft, and Telegraphic Transfer.

5- Foreign Exchange Operations Unit (FEOU)

On the formation of the Banking Services Corporation, Exchange Policy Department was

bifurcated into two parts. Policy side went to State Bank and the Operation side came

under the Banking Services Corporation. The later was named Foreign Exchange

Operations Department (FEOD). Scope of the FEOD consists of implementation of

Foreign Exchange policies by monitoring and overseeing the operations of the

Authorized Dealers (Bank who provide services to exporter).

6- Development Finance Support Unit (DFSU)

Development of an inclusive financial system in the country that could ensure access to

financial Service to all segments/sectors of the economy is an important strategic

objective of SBP. The Establishment of Development Finance Group (DFG) in SBP in

the recent past is aimed at creating the necessary institutional capacity in SBP to achieve

this strategic objective. While the DFG is engaged in enhancing its capacity to catalyze

and facilitate expansion of financial services in un-bank/under-bank areas/sectors, the

group based in Karachi, has no presence in the field to continuously interact with

grassroots level stakeholders and monitor Banks’ progress (at regional/district level) to

develop and expand their Development Finance Capacity. The SBP BSC however has

presence in 16 key areas/regions across the country with immense potential for growth of

Development Finance. The Development Finance Support Department (DFSD) in the

BSC is aimed at using the BSC field offices across the country to augment the DFG

capacity and its role for connecting the Un-bank/under-bank areas/sectors with the

country’s financial markets. The DFSD though Based in BSC Head Office Karachi

(HOK), it has gradually established Units in 13 field offices. The Divisions/Units in the

field offices are the local contact points for continuous interaction with stakeholders.



7- General Services Unit (GSU)

Vision

Our vision is to help the Bank transform into a model institution by inculcating high spirit

of service and extending unmatchable facilitation to our stakeholders.

Mission

Our mission is to provide dedicated and high quality service to our stakeholders with a

sense of warmth and friendliness. Our continuous focus would be towards preparing

dynamic policies, adopting innovative methods to solve unsolved problems and

ultimately become strategic partner in achieving the organizational objectives.

General Services Unit has been established to provide an efficient service to the BSC

employees through one-window approach. It places a renewed vigor of the management

to resolve all employee-related issues with a proactive approach and higher service

delivery standards so that they could work with more devotion and commitment.

Following are the subunits of General Services Unit:

a) Employee Benefits Division

b) Procurement Division

c) Services Division

d) Printing Press

e) Medical Division

f) Health Clinic

8- Currency Management Unit (CMU)

Being the Prime Controller of Currency in the Country, the BSC has put in special efforts

in reviewing currency procedure, practices, rules and regulations for various internal and

external functionaries through CMU.

Main function of this unit is to create awareness among common public about:

Forecasting that how much currency will be needed in coming year

Issue and Distribution of Fresh Notes and Coins

Inventory Management and Accounting

Withdrawal of Soiled Notes from circulation and their destruction

Note exchange facilities and Anti-counterfeit measures



9-Export Refinancing Unit

This Unit provides facility to exporter through Commercial Banks to exports goods and

promotes domestic industry and economy of the Country. Export Refinance Scheme was

introduced with an aim to boost exports of non-traditional items in Pakistan. The scheme

is bifurcated in two parts i.e. Part I & Part II. Under Part-I, the finance is given on pre as

well as post shipment basis for export of eligible commodities. This facility is provided

on a case-to-case basis. Under Part-II, an exporter may avail the export finance limit,

based on his last year’s export performance in respect of eligible commodities.

The process of disbursement of credit through export refinance schemes is operationally

carried out through the field offices of the Bank. These offices have meaningfully

contributed towards disbursement of export finance at industrial centers of the country

through commercial banks. The various sectors of business facilitated by this scheme

include textile, carpets, telecommunication, IT, electronics, leather, frozen seafood etc.

10-PrizeBond Unit

Public finance is a field of economics concerned with paying for collective or

Governmental activities, and with the administration and design of those activities.

Governments usually borrow by issuing securities such as Government Bonds and Bills.

Internal debt owed by a Government as part of the country's national debt. It is a form of

fiat creation of money, in which the Government obtains cash not by printing it, but by

borrowing it. The money created is in the form of Treasury Securities Bonds or Securities

borrowed from the Central Banks. These may be traded but will only rarely be spent on

goods and services. Prize Bonds are bearer type of security and major instrument of

internal source of financing source; through which Government finance their expenses by

issuing Bonds. Prize Bonds is in under of Ministry of Finance and National Directorate.

Funds raised through Prize Bonds are used to offset Government borrowing and are

refundable to the Bond holder (owner), on the demand. Prize Bonds carry no interest, but

have Prize Money through draw.



Public Financing or Government Financing

Public finance is a field of economics concerned with paying for collective or

Governmental activities, and with the administration and design of those activities.

Government financing can be achieved by Taxes, and Borrowings. When Government

expenditure are greater than tax revenue, then Government financing them through

borrowings from various sources like as: borrowing from SBP, Commercial Banks, and

Local Public. Governments issue Bonds and make financial investments. Government

debt can be categorized as internal debt, owed to lenders within the country, and external

debt, owed to foreign lenders.

Governments usually borrow by issuing securities such as Government Bonds and Bills.

Internal debt owed by a Government as part of the country's national debt. It is a form of

fiat creation of money, in which the Government obtains cash not by printing it, but by

borrowing it. The money created is in the form of Treasury Securities Bonds or Securities

borrowed from the Central Banks. These may be traded but will only rarely be spent on

goods and services. In this way, the expected increase in inflation due to the increase in

national wealth is lower than if the Government had simply printed the money and

increased the more liquid forms of wealth.

External debt is part of the total debt in a country that is owed to creditors outside the

country. i.e.: international financial institutions such as the IMF and World Bank.

Prize Bonds are bearer type of security and major instrument of internal source of

financing source through Government finance their expenses by issuing Bonds. Prize

Bonds is in under of Ministry of Finance and National Directorate. Funds raised through

Prize Bonds are used to offset Government borrowing and are refundable to the Bond

holder (owner), on the demand. Prize Bonds carry no interest, but have Prize through

draw.

National Savings Certificates are other form of internal source of financing, which carry

interest after every six.



Directorate of National Saving

There are so many types of securities issued by the Government as well as Private sector

to collect the money from public to finance themselves. Government of Pakistan

encourages the people to invest their money with various scheme designed by Central

Directorate of National Savings (CDNS) as part and parcel of Ministry of Finance.

The history of National Savings Organization dates back to the year 1873 when the

Government Savings Bank Act, 1873 was promulgated. During the First World War, the

British Government introduced several scheme for collection of funds to meet the

expenditure. The need to setup a separate agency of National Savings Bureau was

established in 1943-44 as an attached department of the Ministry of Finance of the

undivided Government of India.

Up to December, 1971, the National Savings Organization functioned as a Publicity

Organization and its activities were merely promotional in nature. But in early 1972, the

scope of its activities was enlarged as the Central Directorate started selling two Rupee

Prize Bonds, and subsequently engaged in the operations of other savings schemes. This

resulted in considerable expansion of the National Savings Organization.

At present, this Organization has a total sanctioned strength of 3,365 employees in

various grades and its main component units are as under:

a) Central Directorate of National Savings, Islamabad;

b) Directorate of Inspection and Accounts, Islamabad;

c) Training Institute of National Savings, Islamabad along with a sub-Training Institute at

Karachi;

d) 12 Regional Directorates (located at Peshawar, Abbottabad, Rawalpindi, Gujranwala,

Lahore, Faisalabad, Multan, Bahawalpur, Sukkur, Hyderabad, Karachi, and Quetta);

e) 366 National Savings Centers scattered all over the country.



National Savings Scheme trading in two Instruments:

1- Interest Bearing Scheme (Instruments)

a) Defence Savings Certificate (DSC)

b) Special Savings Certificates (SSC)

c) Regular Income Certificates

d) Bagbood Saving Certificates

e) Savings Account

f) Special Savings Account

g) Pensioner’s Benefit Account

2- Non Interest Bearing Account

a) National Prize Bonds Scheme

As my report topic is Prize Bonds and Government Securities (Special Savings

Certificates (SSC), and Defence Savings Certificates). So first I defined what are the

Prize Bonds, who print it, what are the procedure of printing it, how its arrive at Karachi

Head Office and other offices, then sale, encashment, sale for re-issue able and disposal

of non re-issuable Prize Bonds.

Then I turn into National Savings Certificates which are related with my topic i.e.:

Special Savings Certificates (SSC) and Defence Savings Certificates (DSC). What is their

maturity, and how it earns simple and compound interest on its face value throughout its

maturity.



National Prize Bonds Scheme

Introduction

The sale of Prize Bonds of Rs.10/- denomination under the scheme of National Prize

Bonds was commenced by the Bank as an agent to the Government of Pakistan from 1 st

October 1960 a detailed procedure for the management of National Prize Bonds by the

Offices of the Bank was drawn up and circulated to them under “Central Directorates”

circular letter No. PB/88/ (PB-1)-60 dated the 12th September 1960 till October 1963. The

said procedure was followed by our offices.

Prize Bonds of Rs.5/- and Rs.11/- denomination were introduced from 24th June 1964. As

the popularity of the Prize Bonds on its ready convertibility into cash, it was decided to

afford the facility of free encashment of the Prize Bonds at all the offices of the SBP,

Commercial Banks, and Post Offices all over Pakistan irrespective of the place of their

issue. Therefore keeping in view the interest of Public, Government and the Bank, it was

decided that National Prize Bonds presented at the counters of above institutions should

be engaged in the same manner in which currency notes were exchanged. Further, the

Prize Bonds so en-cashed should be resold to the public so that who wanted to buy old

Bonds in series which had already been sold out might get an opportunity of acquiring

them and the cost of printing of Prize Bonds to the Government reduced. Besides, Prize

Bonds of Rs.50/-, Rs.10/-, Rs.500/- and Rs.1000/- have also been introduced with effect

from 1st July 1981.



Outline of Scheme

This scheme was effective up-to 1999 are called Old Denomination Prize Bonds

The Prize Bonds will call National Prize Bonds these will be issued as a Central

Government loan and will be treated as Government bearer Bonds. They will be in the

denomination of Rs.5/-, Rs.10/-, and Rs.50/- these are called Lower Denomination

Bonds. Rs.100/-, Rs.500/-, and Rs.1000/-; these are called Large Denomination Bonds.

Both denomination will be issued in series, distinguishing number from which will

preceded by a single and thereafter double etc. alphabet viz: A , B , C e.t.c ., AA, AB,

AC, BA, BB etc. followed by six digits. Each series of Rs.10/- Denomination consist of

Five Hundred Thousand Pieces, Rs.5/- Denomination Prize Bonds series consist of One

Million Pieces of Bonds. Each series of Rs.50/-, Rs.100/-, Rs.500/-, and Rs.1000/-

Denomination consist of One Hundred Pieces. The Bonds will not bear interest but lots

will be drawn in every Two months for Denomination of Rs. 5/- , Rs. 10/- and Rs. 11/-

lots will be drawn on Denomination of Rs.50/-, Rs.100/-, Rs.500/-, and Rs.1000/- on

quarterly basis.

This scheme was effective from 1999 are called New Denomination Prize Bonds

This Scheme consists of Six Denominations, Three are in Lower Denomination and

Three are in Large Denomination: Lower denomination consists of Rs.200/-, Rs.750/-,

and Rs.1500/- lots of these will be drawn once in every three months the draw occur on

15th of the month in which draw has to occur. Large denomination consists of Rs.7500/-,

Rs.15000/- and Rs.40, 000/- lots of these will be drawn once in every three months the

draw occur on 1st of the month in which draw has to occur. If any of the aforesaid dates

happened to be a public holiday, the draw will be held on next working day. These dates

are duly announced by Chief Director, National Savings, Government of Pakistan,

Ministry of Finance in Government Gazette and newspapers. The Prize Bonds draws will

be conducted in accordance with the procedure for the national Prize Bonds. As the

Bonds are of bearer type the holders there-of will be deemed as their owners and

ownership will passes from person to person by simple delivery. Sale and encashment of

above mentioned Prize Bonds will continue till such time as the central Government

notifies closure of the sale in the Gazette of Pakistan.



Printing and Supply of the National Prize Bonds

The National Prize Bonds will be printed by the Pakistan Security Printing Corporation

(PSPC) in such forms as will be 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 the National Prize Bonds such as are not easily available to

facilitate forgery.

Delivery of Prize Bonds by the Pakistan Security Printing Corporation Limited

The PSPC will advise the Director, Accounts Department, State Bank of Pakistan,

Central Directorate, Karachi, full particulars of the Prize Bonds that are printed by them.

The Director of Accounts will allocate and arrange distributions of each series of the

National Prize Bonds among the Karachi Public Debt Offices (Central) under advice to

them. The allocation will be made on the basis of the results of past sales at the two

Public Debt Offices. The Pakistan Security Printing Corporation will, thereafter, be

advised to dispatch the Prize Bonds to the respective Public Debt Offices accompanied

by their representative in accordance will the allocations made the Bank. The Central

Directorate will also endorse copies of the allocation advices to the Prize Bonds Section

(Central) at Karachi.

After detailed counting and examination, Prize Bonds Section dispatches the Prize Bonds

to Public Debt Office Karachi and Lahore according to their allocation for distribution

among the offices under their jurisdiction.

Receipts and Examination of the Prize Bonds

The Prize Bonds will be received by the Accounts Office-in-Charge and the

representative of Accountant (Cash) Treasurer at each Public Debt Office viz., Karachi

and Lahore. After the Prize Bonds have been subject to cent per cent examination in

presence of the press representative they will be taken in to Stock Account in the Stock

Register of Fresh Prize Bonds (Form PB-4).



Supply of Bonds to other Offices of the State Bank of Pakistan

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. Prize Bonds will be issued

by the Offices of the State Bank of Pakistan at Karachi, Lahore, Quetta, Peshawar,

Islamabad, Hyderabad, Multan, Faisalabad, Rawalpindi, Sukkur, Bahawalpur, D.I. Khan,

Gujrawala, Sialkot, and Nazimabad. A special section styled “Prize Bonds Section” will

be formed at each Field Office of the State Bank of Pakistan with such minimum

additional staff as is considered essential to deal with the work relating to the issue of

Prize Bonds. The Prize Bonds will also be available for purchase by the Public at the

Commercial Banks, National Savings Centers and Post Offices anywhere in Pakistan.

However, these institutions will lift Prize Bonds from the Offices of the State Bank of

Pakistan against payment and sell them to the members of the Public at their face value.

The process of encashment will continue throughout the day and at the close of the

business en-cashed Bonds will be sorted out into two lots one of good Bonds fit for re-

issue and the other of excessively soiled, mutilated etc., Bonds unfit for re-issue. Re-

issuable Bonds collected in the evening by the Deputy/Assistant Treasurer, collecting the

evening balances. These en-cashed Bonds will be enter in the stock Register of Re-

issuable Bonds in Form PB-10 under the authentication of Deputy Assistant Treasurer

and Assistant Chief Manager Officer-in-Charge, Prize Bonds Section before being

deposit into the vault. On the next working day re-issuable Bonds will be issued to In-

charge of the Counter for sale to the public.

Sale of Prize Bonds

The Prize Bonds will be sold against the cash and as such no formal applications are

required to be submitted by purchasers for the purpose. The Prize Bonds are bearer

Bonds and as such the selling office is not required to make any endorsement there on or

write the name of the purchaser either on the Bond itself or in the teller’s sale register.

However the name of the office of the State Bank of Pakistan selling the Bonds and the

date of sale of the Bonds will be affixed on the face of the Bonds at the space provided

for the purpose before the Bonds are handed over to the purchasers.



At all the Field Offices of the Stated Banks of Pakistan sale of Prize Bonds will be

conducted over the counters of the Cash Department. In the morning the Bonds will be

taken out from the vault as is the case Bank notes issued to the counter Tellers. The

counter Teller will enter particulars of the Bonds, viz: Series, Serial numbers and total

pieces of the Fresh Bonds and Series and total pieces in respect of Re-issuable Bonds in

the receipt column of Teller’s Sales Register prescribed for the purpose (form PB-7). The

receiving Teller will verify the Fresh and Re-issuable Bonds by counting. Particulars of

sold Bonds either Fresh or Re-issuable duly entered in columns provided in the aforesaid

register.

The statement of sales should be compiled in Form PB-8. This statement of sales will be

prepared in two parts; first part will show the detailed particulars of Fresh Bonds sold viz;

series, serial no, total pieces, and value and second part will show the series wise total

pieces and value of the Re-issuable Prize Bond sold, this statement must be checked and

signed by Deputy/Assistant treasurer and accountant (Cash)/ treasurer and delivered to

the Assistant Chief Manager (ACM) in-charge, Prize Bonds section through pass book.

As regards sales to Post Offices and Commercial Banks an arrangement would ordinary

be made by the Prize Bond section in terms Post Offices and Banks will give one day’s

prior notice of purchase to accounts Officer-In-Charge Prize Bond section. On receipts of

this notice ACM will advice the cash department who will keep the Bonds ready for

delivery to the Banks and Post Offices through special counters. Ordinary Commercial

Banks and Post Offices will make payments for the Bonds by means of checks drawn on

their accounts which the SBP, with the covering letter.

Encashment of Prize Bonds

It will be open to the holders of Prize Bonds to get their holdings by en-cashed it at any

Office of the State Bank of Pakistan or a Commercial Banks or the Post Offices

throughout Pakistan wherever they like. The State Bank of Pakistan will en-cashed all

Prize Bonds presented at their counters irrespective of the fact whether they have been

issued by them or by other Field Offices of the State Bank of Pakistan.



The encashment of Bonds will be done at the counters of the cash department. The

Teller-in-Charge of the counter will receive the Bonds tendered and examine them to

ensure that:

The Bonds are genuine;

The Bonds bear the name of place and date of their issue;

The series and numbers are intact and

The Bonds are free from mutilation and erasure.

If the Teller is satisfied about the genuineness of the Bonds and they are free from defects

he will enter En-cashed Bonds in his Register (Form PB-7A)

Sale of Re-issuable Prize Bonds

Sale of Re-issuable Prize Bond continues One Month after draw of respective

Denomination Bond, because it’s mandatory for holder to keep minimum of Two month

before respective draw of any Denomination of Bonds.

Like as: On 2nd Jan 2010 their were the draw of Rs. 15000/- denomination, then up to 31st

Jan 2010 sale Rs.15000/- Denomination Re-issue able Bonds continue, then shut period

of two month i.e. :(selling of re-issuable Bonds stop of Rs. 15000/- denomination Prize

Bonds for two: Feb and Mar), then selling of Rs. 15000/- Denomination Prize Bonds

again start after, for month after the draw which was held on the 1 st April 2010 then again

shut period of two month. This process is continuing for all the denomination throughout

the year. As both Re-issuable and Defaced Prize Bonds in the custody of the State Bank

of Pakistan will be eligible to participate in the Prize Draw, it is quite likely that some of

these Bonds may win prizes. The Prize Money won by those Bonds will be credit to

Government.

Defaced Bonds – Disposal of

The excessively soiled, torn or mutilated etc, Bonds on the payment or exchange will not

be Re-issued if considered unfit for circulation, no Duplicate Bonds, in lieu thereof, will

be printed and issued, such defaced, mutilated Bonds will be put out of circulation



permanently by destroying them by burning by Offices after observing the following

procedure:

Ensure that Bonds are recorded in Register in form PB-35 PB-11 and PB-17

which will be preserved permanently by Offices under taking destruction.

Before actual destruction by the offices, the defaced/mutilated Prize Bonds should

be made up in packets (100/- pieces) or in bundle (10 packets).

After destroying these Bonds, the stock of defaced Bonds will be reduced by the

Offices from the Stock Registers PB-11 and PB-17.

Destruction of the accumulated Prize Bonds should be done one day before the

date of the relative draw.

Payment of Prize Money

Claim for Prize Money received at the Public Debt Office of Issue from the following

sources:

Claim lodged directly at the counter of the Public Debt Office

Claim received by other offices of the Stated Bank of Pakistan and forwarded to

the Public Debt Office of Issue

Claim received through post.

The Prize Money claim of Rs. 1,250 is counter payable within five minute after

verification from Prize List and originality of Prize Bonds, Prize Money claim from

9,300/- to 18,500/- against wining Bonds are received and processed at this unit. The

number of Prize Winning Bonds is verified from the Prize List and particulars of the

claimant are entered in Registered PB-18 by Assistant Account Officer (AAO).

Thereafter on the basis of recommendation of the AAO and necessary scrutiny the claims

is passed by Account Officer and deliver to Scrolling Section of the said Unit for onward

delivery to the Cash Department, then Cash Department pay the Prize Money after

deduction of tax 10%. Bonds are retained in field offices of the State Bank of Pakistan for

six years if Prize Money is more than Rs. 10,000/- if not then Bonds are ready for Re-

issue able again.



Prize Money above Rs. 18,500/-, receiving claim Offices of the State Bank of Pakistan

confirm through telex in form PB-59 regarding the outstanding position of case in PB-18.

On receipt of confirmation in form PB-60 from concern Public Debt Office, the claim

will be settled. Prize Money above Rs. 18,500/- is paid to party through pay orders.

Audits are performed to ascertain the validity and reliability of information; also to

provide an assessment of a system's internal control. All Prize Money paid after the

auditing of the Bonds, some audits are performs by Assistant Officer and some audits are

done through the Internal Monitoring Unit. Audit performs by AO named as checking

and rechecking of Prize Winning Bonds. Prize Money claims of Rs. 100,000/- and above

are sent to PSPC for verification of their genuineness.

Denominations

No. of

prize

Amount of

prize

No. of

prize

Amount of

prize

No. of

prize

Amount of

prize

200/- 1 750,000 5 250,000 2,394 1,250

750/- 1 1,500,000 3 500,000 1,696 9,300

1500/- 1 3,000,000 3 1,000,000 1,696 18,500

7500/- 1 15,000,000 3 50,000,000 1,696 93,000

15000/- 1 30,000,000 3 10,000,000 1,696 185,000

40000/- 1 75,000,000 3 25,000,000 1,696 500,000

Time Line for Prize Money Claims

Prize Money up to Rs. 18,500/- same day (30th draw onwards)

Prize Money up to Rs. 185,000/- 10 working days

Prize Money up to Rs. 500,000/- 15 working days

Prize Money above Rs. 500,000/- 20 working days

Verification of Balances of Prize Bonds

The chief Manager will depute an officer other than officer-in-charge of the Prize Bonds

to conduct verification of the balances of Prize Bonds at the end of each month. The

monthly verification will be conducted by counting through Globus Software as well as



physical counting of bundles and packets. After verification, a copy of the verifying

officer’s report in Form PB-36 will be sent to the Prize Bonds Section (Central), Karachi.

Commission and expenses in connection with the Management of National Prize

Bonds Scheme

The Central Government will pay to the SBP, the following commission and expense in

connection with the management of Prize Bonds:

Actual expense incurred by the offices of the SBP on postage and telegram.

Cost of printing of Prize Bonds

All expenses incurred by the SBP in connection with Prize Draws

Commission at the rates as applicable to other Central Government loans.

Commercial Banks and Post Offices will be paid commission of 10% on the value of

Fresh as well as re-issuable Bonds sold to them by State Bank of Pakistan (SBP).

Internal Audit of Prize Bonds work

The Prize Bonds work at the Offices will be audited every Month by their Internal Audit

Section. The Internal Audit Section will particularly see that the various procedures and

instructions lay down by the Central Directorate for the conduct of the Prize Bonds work

including maintenance of accounts, registers e.t.c. are being meticulously followed. It is

also ensure that accounts are accurately prepared, checked and signed, expenditure is

properly authorized and adequate provision has been made for internal checks/counter

checks.



General Ledger/ Prize Bonds Ledger PB-1

Register of Prize Bonds cases received from the Printing Corporation/other Offices of the

State Bank of Pakistan. PB-2

Stock Register of Fresh Prize Bonds PB-4

Register of Distribution of Prize Bonds to Public Debt Offices PB-6

Teller’s Sell Register PB-7

Teller’s Encashment Register PB-7A

Statement of Sale PB-8

Stock Register of Re-issuable Prize Bonds PB-10

Stock Register of Defaced (cancelled) Prize Bonds PB-11

Statement of Encashment PB-12

Statement of Encashment of Prize Bonds without sorting PB-12a

Statement of Encashment of Prize Bonds kept on Guarantee/ en-cashed without series

wise. PB-12b

Statement of Prize Paid PB-13

Issue Register PB-14

Fresh Prize Bonds Stock Register PB-15

Re-issuable Prize Bonds Stock Register PB-16

Defaced Prize Bonds Stock Register PB-17

Register of Payment of Prize PB-18

Register of Payment Orders issued in respect of prizes paid PB-19

Register of sale and encashment of Prize Bonds PB-20

Progressive Statement of Sale and encashment PB-21

Consolidated Statement of Prize Paid PB-22

Application for claim Bonds up to Rs.200/- PB-23

Application for claim Bonds above Rs.200/- PB-23 A,B,C

Statement of Defaced Bonds PB-25

Statement of stock position of Fresh, Re-issuable and Defaced Bonds PB-26

Register of Re-issuable and Defaced Bonds PB-35

Register of Showing Prize Winning Numbers PB-42

List of Prize Winning Numbers PB-43



Daily Position of Sales-encashment and stock of Fresh, Re-issuable, Duplicate, Defaced

Bonds Balance PB-51

Monthly Progressive Report of National Prize Bonds PB-53

Date and place of Draw for all denomination of Bonds from Rs. 200/- to Rs. 40000/-

for 2010

Bond Draw Date Day City

Rs. 15,000/- 41 January, 02 2010 Sat MULTAN

Rs. 750/- 41 January, 15 2010 Fri BAHAWALPUR

Rs. 7,500/- 41 February, 01 2010 Mon PESHAWAR

Rs. 1,500/- 41 February, 15 2010 Mon RAWALPINDI

Rs. 40,000/- 41 March, 01 2010 Mon KARACHI

Rs. 200/- 41 March, 15 2010 Mon FAISALABAD

Rs. 15,000/- 42 April, 01 2010 Thur MUZAFARABAD

Rs. 750/- 42 April, 15 2010 Thur MULTAN

Rs. 7,500/- 42 May, 03 2010 Mon QUETTA

Rs. 1,500/- 42 May, 15 2010 Sat BAHAWALPUR

Rs. 40,000/- 42 June, 01 2010 Tue RAWALPINDI

Rs. 200/- 42 June, 15 2010 Tue LAHORE

Rs. 15,000/- 43 July, 02 2010 Fri HYDERABAD

Rs. 750/- 43 July, 15 2010 Thur QUETTA

Rs. 7,500/- 43 August, 02 2010 Mon FAISALABAD

Rs. 1,500/- 43 August, 16 2010 Mon KARACHI

Rs. 40,000/- 43 September, 01 2010 Wed LAHORE

Rs. 200/- 43 September, 15 2010 Wed PESHAWAR

Rs. 15,000/- 44 October, 01 2010 Fri RAWALPINDI

Rs. 750/- 44 October, 15 2010 Fri KARACHI

Rs. 7,500/- 44 November, 01 2010 Mon LAHORE

Rs. 1,500/- 44 November, 15 2010 Mon MUZAFARABAD

Rs. 40,000/- 44 December, 01 2010 Wed MULTAN

Rs. 200/- 44 December, 15 2010 Wed HYDERABAD



National Savings Schemes

Defence Saving Certificates:

The Government of Pakistan introduced Defence Savings Certificate scheme in the year

1966. This is the most popular scheme among investors. This scheme has specifically

been designed to meet the future requirements of the depositors. This is the only scheme

with 10 years maturity with built in feature of automatic reinvestment after the maturity

i.e. in case any certificate is not en-cashed on maturity, the balance at credit (principal +

profit) without any deduction, shall be deemed to have been reinvested for another period

of 10 years on filling in a new application form. When any party wants to get the profit

on DSC he/she first en-cash the certificate then get profit on DSC on the basis of

compound interest rate. These certificates are available in the following denominations

Total of Eight denominations of Defence Saving Certificates are traded, which are:

Rupees:

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. These certificates can be

purchased by filling in a prescribed form (SC/I), obtainable from any National Savings

Centre, Pakistan Post Office, SBP BSC (Bank). A copy of the Computerized National

Identity Card (CNIC) or in case of foreign national, a copy of the Passport may be

attached with the application form (SC/I). There is no maximum limit of investment in

this scheme. The Certificates shall, notwithstanding anything to the contrary appearing on

the obverse or reverse of the certificates, be en-cash able at par at any time after the date

of purchase. These certificates can be purchased by depositing cash at the issuing Offices

or by presenting a cheque. The certificates shall immediately be issued on receipts of

Sukkur Institute of Business Administration: Salman Saeed Soomro

Rs. 500/- Rs. 50,000/-

Rs. 1,000/- Rs. 100,000/-

Rs. 5,000/- Rs. 500,000/-

Rs. 10,000/- Rs. 1,000,000/-

26


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.

Interest rates changed time to time to reduce the impact of Inflation on public. The

Finance Division, Govt. of Pakistan, according to the Notification No.F.20 (2) GS-I/200/-

7-1289 dated 24.06.2008 has reviewed the rate of return on Defence Savings Certificates.

The return on Defence Saving Certificates has been fixed as given in table below, for the

certificates issued with effect from 24.06.200/-8. The Defence Savings Certificates

purchased prior to the above said Notification shall earned profit at the rate prevailing on

the date of purchase. The year wise payable amount on initial investment of Rs.100/- is

given as under:

YEARS1 2 3 4 5 6 7 8 9 10

RUPEES 108 118 129 142 158 177 201 230 265 315

Interest Rates on Defence Savings Certificates from time to time Issues Interest Rates per alum

Jul 01 2004 to Jun 30 2005 8 & 9 8.15%Jul 01 2005 to Jun 04 2006 10 9.46%Jun 05 2006 to Jun 22 2007 11 10%Jun 23 2007 to Jun 23 2008 12 10.15%Jun 24 2008 to current 13 12.15%

i) Zakat shall be deducted only once at the time of actual encashment on the value fallen

due on the relevant valuation date i.e. (1st Ramadan) and not on the continuous

reinvestment after the maturity. A Zakat collection receipt duly signed by the two officers

is issued in token of the deduction of the amount.



ii) With Holding Tax: As per directions of the Federal Government, the tax on profit

from investment made on or after the 1st July,200/-2, shall be deducted at source at the

rate of Ten Percent (10%) of such profit if such deposit exceeds Hundred and fifty

Thousand Rupees (150,00/-0).

Transfer of Certificates:

From one Centre to another

Certificates are transferable from one city to another by applying on the prescribed form

(SC/6) obtainable from any NSC/ SBP BSC (BANK) office and also available at the

website of National Savings (http://www.savings.gov.pk) under the option of "Forms".

The application duly filled in along with two copies of NIC may be presented at the

office of issue or at the office where the transfer is desired. However, the certificates

purchased from scheduled banks, State Bank of Pakistan, SBP BSC (Bank), PPO and

NSC can be transferred to and from the respective branches of the issuing office /

agencies only.

From one person to another

Certificates are transferable from one person to another on the expiry of non/en-cash

ability period, by applying on the prescribed form (SC/4). In case of death of the

purchaser, certificates can be transferred in the name of nominee(s) without any

fee/charges or to the legal heir(s) on furnishing among others, a succession certificate

issued by the competent court of law, along with:

1. Application on the prescribed form (SC/4);

2. Death certificate of the purchase;

3. Attested photocopies of CNIC of the deceased and the nominee (s);

4. Specimen signatures of nominee (s) attested by a Gazette Officer.



Investment from Abroad in Defence Savings Certificate

Investors from abroad may send applications along with remittance of the desired

amounts either directly to the Director General or concerned Director/Joint Director or to

the National Savings Centers, where investment is desired to be made. The remittance of

the amount may be made either through a cheque or bank draft in the official designation

of the concerned payee. The certificate shall be issued/account opened after the

remittance accompanying the application is enclosed and credited to Government

account. The Principal and profit accrued on a certificate issued/account opened, against

foreign exchange received through remittance or transfer from foreign currency account

or surrendering foreign exchange bearer certificates/dollar bearer certificates shall be

payable abroad to the purchaser in foreign currency, if so desired by the investor.

The amount received in foreign currency shall be converted into Pakistani rupees, in

accordance with the exchange rates prevailing on the date of clearance of the bank draft.

The amount of principal or profit will be converted into foreign currency in accordance

with the exchange rates prevailing on the date of remittance.



Special Savings Certificates (SSC)

This Scheme being of three years maturity was introduced in February, 1990 keeping in

view the periodic needs of depositors. These certificates are available in the

denomination of Rs.500/-, 1,000/-, 5,000/-, 10,000/-, 50,000/-, 100,000/-, 500,000/- and

Rs.1, 000,000/-. Profit is paid on the completion of each period of Six months. In case,

the profit earned on these certificates is not drawn on due date, the undrawn profit will

automatically stand reinvested from date of its accrual. Interest rates of SSC change time

to time to reduce the impact of inflation on General Public So for that Profit payable on

Special Saving Certificates (Regd.) Finance Division, Govt. of Pakistan, according to the

Notification No.F.20 (4) GS-I/200/-8-1204 dated 0.06.200/-9 has reviewed the rate of

return on Special Savings Certificate (Regd.). The return on Special Saving Certificates

(Regd.) has been fixed as given in table below, for the certificates issued with effect from

01.07.200/-9. However, the Special Savings Certificates (Regd.) purchased prior to the

said Notification shall earned profit at the rate prevailing on the date of purchase.

When party wants to get profit then party not need to en-cash the certificates like in DSC.

SSC and DSC Certificates are reinvested if party doesn’t present the certificates at the

time of maturity at the rate which will at that time.

SSCs Purchased Jul 01 200/-9 -till notification (issue-17)(Simple Interest Schedule of SSC) 11.6% Per year for 1st five profits and @12 Per year for the last ProfitPeriod of six month 500/- 1,000/- 5,000/- 10,000/- 50,000/- 100,000/- 500,000/- 1,000,000/-1 29/- 58/- 290/- 580/- 2,900/- 5,800/- 29,000/- 58,000/-2 29/- 58/- 290/- 580/- 2,900/- 5,800/- 29,000/- 58,000/-3 29/- 58/- 290/- 580/- 2,900/- 5,800/- 29,000/- 58,000/-4 29/- 58/- 290/- 580/- 2,900/- 5,800/- 29,000/- 58,000/-5 29/- 58/- 290/- 580/- 2,900/- 5,800/- 29,000/- 58,000/-6 30/- 60/- 300/- 600/- 3,000/- 6,000/- 30,000/- 60,000/-



Interest rates on Special Savings Certificates (SSC) time to time

Issues For 1st five profit Sixth profitJul 01 2004 to Jun 30 2005 7 & 8 6.95%Jul 01 2005 to Jun 04 2006 9 8.60%Jun 06 2006 to Jun 22 2007 10 9.17%Jun 23 2007 to Jun 23 2008 11 9% 10.50%Jun 24 2008 to Sep 30 2008 12 11% 12.50%Oct 01 2008 to Nov 30 2008 14 12.80% 14%Dec 01 2008 to Mar 31 2009 15 14.10% 15.20%Apr 01 2009 to Jun 30 2009 16 13% 14.20%

Jul 01 2009 to current 17 11.60% 12%



Reference:

1- Mr. Sajid Ali Shah Chief Manager SBP BSC (Bank) Sukkur Field Office

2- Mr. Bashir Ahmed Jumani OG-2 SBP BSC (Bank) Sukkur Field Office

3- Mr. Mushtaq Ahmed Bhayo SBP BSC (Bank) Sukkur Field Office

4- Mr. Altaf Ahmed Memon SBP BSC (Bank) Sukkur Field Office

5- Mr. Abdul Razzaq Soomro OG-2 SBP BSC (Bank) Sukkur Field Office

6- Mr. Dilawar Hussain ACM SBP BSC (Bank) Sukkur Field Office

7- Internet

www.google.com

www.sbp.org.pk

www.wikipedia.com


http://www.wikipedia.com/

http://www.sbp.org.pk/

http://www.google.com/

Date post:	10-Apr-2015
Category:	Documents
Upload:	salman-saeed
View:	3,219 times
Download:	0 times

Report on Prize Bonds and Other Unit of SBP BSC(Bank) Sukkur

Documents