The State Bank of Pakistan (SBP) has directed commercial banks to settle all Premium Prize Bond (PPB) sale transactions on the same day, introducing a revised reporting and settlement mechanism aimed at improving operational efficiency.
Under the new framework, banks will report PPB sale transactions through the Data Acquisition Portal (DAP) within prescribed timelines. Based on the reported sales, the SBP Banking Services Corporation (SBP BSC) will debit the respective bank’s account on a daily basis.
The central bank said banks that fail to settle sale proceeds on the same day will be required to pay use of funds charges for the delay. The charges will be calculated using the SBP’s overnight reverse repo ceiling rate applicable during the delayed period.
According to the circular, the SBP BSC’s Karachi office will calculate and recover the use of funds charges by debiting the concerned bank’s account and crediting the Central (Non Food) Account.
The SBP also said banks will be held liable for the full amount of any profit or prize money paid incorrectly because of non reporting, delayed reporting, or misreporting of prize bond sale, encashment, or transfer transactions, subject to adjustment of income tax where applicable.
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