Banking Regulations and Bond Management Quiz

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Questions and Answers

What is the purpose of maintaining separate folios in the Receipt Register for each denomination and category of certificates?

To expedite the sale of certificates to banks

To ensure accurate accounting and tracking of each type (correct)

To simplify the process of recording transactions

To reduce the need for vault security procedures

What is the procedure for scheduled banks after selling certificates?

They should report total sales value to Head/Regional Offices within 72 hours. (correct)

They are required to return unsold certificates to the State Bank immediately.

They must lock the proceeds in the vault until advised otherwise.

They can keep the sales information confidential until the end of the month.

What is the ratio of counting pieces per capita for fresh currency notes?

1000 pieces

20000 pieces (correct)

5000 pieces

25000 pieces

How is the commission for scheduled banks structured regarding non-institutional investments?

0.5% on the total value of certificates sold Signup and view all the answers

Which form must scheduled banks submit by the 7th of every month?

DSC-1A Signup and view all the answers

What is required for a bond holder to transfer their title to another person?

A prescribed application submission Signup and view all the answers

Which denominations of bonds qualify for a prize in the forthcoming draw?

Rs. 40,000/- and Rs. 100,000/- bonds issued as specified prior to the draw Signup and view all the answers

What happens if a bond is encashed before the completion of six months?

No profit will be paid on the bond Signup and view all the answers

What is the total number of pieces in each series of bonds?

999,999 pieces Signup and view all the answers

How often are the draws for the bonds held?

Quarterly or as notified Signup and view all the answers

What is the consequence of encashing Rs. 40,000/- and Rs. 100,000/- bonds before the draw results are announced?

They will not be awarded prizes if they win Signup and view all the answers

How frequently is the profit rate on bonds notified?

Whenever deemed necessary by the Federal Government Signup and view all the answers

What is the minimum time period after which the bonds may be pledged as collateral?

Three months Signup and view all the answers

What exemption applies to the profit and prize money from the investments made under this scheme?

Exempt from compulsory deduction of Zakat Signup and view all the answers

Which organization is responsible for printing the bonds?

Pakistan Security Printing Corporation (PSPC) Signup and view all the answers

What will be the prefix for the serial numbers on the bonds?

A, B, C... and then AA, AB... Signup and view all the answers

What percentage of the total printing cost is paid in advance to PSPC?

99% Signup and view all the answers

What is the purpose of the advance payment plan for printing costs?

To ensure faster delivery of bonds Signup and view all the answers

How are the printed bonds organized after printing?

Packaged into packets of 100 pieces each Signup and view all the answers

What condition allows for changes to the payment plan for bond printing costs?

Discretion of CDNS/Ministry of Finance Signup and view all the answers

What alphabets are excluded from the serial numbers to avoid confusion?

I and O Signup and view all the answers

What is the minimum cash transaction amount at which Currency Transaction Report (CTR) requirements are applicable for Premium Prize Bonds?

Rs. 2.0 Million Signup and view all the answers

Which document must be forwarded to CMD on a daily basis?

Register of Consolidated Sales Signup and view all the answers

What authentication is required for transactions with more than two cuts or overwrites?

Full signatures as per CNIC/SNIC Signup and view all the answers

What identity document is NOT required for sole proprietorship verification?

Computerized National Identity Card (CNIC) Signup and view all the answers

Which document is crucial for corporate investors as part of their identity documents?

National Tax Number (NTN) Signup and view all the answers

What type of document must be included for a partnership to demonstrate its establishment?

Partnership deed signed by all partners Signup and view all the answers

What is required for the verification of bonds owned by an investor?

Statement showing Bonds Owned (RB-15) Signup and view all the answers

What must accompany office transactions with manually affixed stamps?

Date and place of issue stamp Signup and view all the answers

What type of identification is NOT necessary for an authorized signatory of a firm?

National Tax Number (NTN) Signup and view all the answers

What document is essential for verifying all partners in a partnership?

Attested copy of the Partnership Deed Signup and view all the answers

What document is required from limited companies to invest in Premium Prize Bonds?

Resolution of Board of Directors authorizing the investment Signup and view all the answers

Which document is NOT required from Trusts intending to invest in Premium Prize Bonds?

Internal audit report Signup and view all the answers

Which of the following entities requires a letter from a commercial bank to authorize the use of an account for purchasing Premium Prize Bonds?

Limited Companies Signup and view all the answers

What is a required document for NGOs or NPOs to invest in Premium Prize Bonds?

By-laws/Rules & Regulations Signup and view all the answers

For clubs and societies investing in Premium Prize Bonds, what document must accompany the by-laws?

Resolution of the Governing Body Signup and view all the answers

Which statement about the documentation for Government Departments is true?

The authority must be endorsed by the Ministry of Finance. Signup and view all the answers

What specific document is required from limited companies to validate their formation?

Certificate of Commencement of Business Signup and view all the answers

Which of the following is a requirement for associations investing in Premium Prize Bonds?

Legible photocopy of identity documents of members Signup and view all the answers

What document must directors of a limited company provide when investing in Premium Prize Bonds?

Legible photocopies of valid identity documents Signup and view all the answers

Which document is specifically required for Trusts and not for other types of organizations intending to invest?

Instrument of Trust Signup and view all the answers

Study Notes

Business Process Manual - Prize Bond Unit

This document details the business processes for the Prize Bond Unit of SBP BSC, Islamabad Office.
It outlines procedures for handling small prize money claims (up to Rs. 18,500).
Direct credit of prize money is an option, as is paying via cash counter.
The claim application form (PB-23) must be submitted with the required documents.
Original prize bond, a legible copy of the prize bond, and legible valid CNIC are needed.
The claimant's bank account details (IBAN) must be in their name only.
Conventional bank accounts are acceptable for direct credit.
Islamic bank accounts are not accepted until SBP BSC develops appropriate Shariah-compliant accounts.
Counter officials verify claims and documents, including bond authenticity (UV lamp and magnifying glass).
The T-24 system is used for recording data and checking bond details (date/place of issue).
The counter official records the RTGS Bank Account information from the SBP BSC Karachi office.
A maximum turnaround time (TAT) of T+1 is standard for processing small prize money claims.
Claimants are advised to review IBAN and bond numbers in the acknowledgment receipt.
Claims are processed and funds credited through RTGS to accounts within designated timeframes (by 4:30 PM).
Unauthorized transactions are placed on hold until next working day.

Additional Topics (pages 3-6)

System-generated acknowledgment receipts will be provided for transactions.
Separate acknowledgements for each transaction number in T-24 are issued.
Claimant reviews IBAN and bond details in acknowledgment.
Bond and claim application form are endorsed with appropriate stamps and signatures.
Maximum turnaround time is 24 hours (T+1).
Claims exceeding Rs. 18,300/- will be handled differently via direct account credit.
Retained bonds are transferred to Issue & Treasury Unit.
Encashed or retained bonds are deposited in the Prize Bonds Vault per established procedures.

Additional Topics (pages 7-9)

The process for returning prize money from commercial banks is detailed.
A T-24 system "Receipt of Big Prize Money Claim" version is used, recording necessary details.
Maximum Turnaround Time (TAT): 24 hours
Prize Bond numbers and bank account details are checked for accuracy using the relevant system.
Claims are processed with scrutiny done by the counter official, who verifies all particulars.
A single acknowledgment receipt is issued for each application form, regardless of the number of winning bonds.
The process for handling prize claims of varying amounts is also explained (e.g., up to Rs. 18,500; exceeding Rs. 18,500).

Additional Topics (pages 10-11)

Claim application forms and relevant documents are scrutinized for accuracy and completeness.
There are different processes for handling prize claims depending on the amount.
The process for completing a prize money claim is detailed.
Bank account details must match the claimant's name.
Prizes over Rs. 18,500 are paid via direct credit to the claimant's bank.
Claimants are instructed to verify the information in their acknowledgment receipts.
Taxpayer status is verified depending on the type of account.

Additional Topics (pages 12-13)

Prize Bond Units are operated using a specific process.
Several documents including original prize bonds, copies, CNIC, and forms are required.
Prize bonds in excess of Rs 18,500 are processed by transferring to issue and treasury units.
These bonds are to be handled as per prescribed procedures, and deposited into the appropriate vault.
Claims are processed according to the procedures detailed for prize bonds with varying amounts and types.

Additional Topics (pages 14-17)

The process for placement of prize bond orders is described.
National savings certificates are dispensed by the involved parties.
A range of prize bond issues and their handling are covered.

Additional Topics (pages 18-20)

There is a process for handling claims of prize bonds issued through various mediums (e.g. cash and cheque).
The manual lists forms related to prize bond application and procedures (detailed).
Details of prize bond procedures and relevant forms are detailed.
Methods involved in the transfer of prize funds are explained.

Additional Topics (21-23)

Processes involved in handling prize money claims involving various payment methods are outlined (e.g., transactions via bank, cash, cheques etc.).
Instructions for the handling of various documents and processes are described.
This manual covers procedures for encashing prize bonds, including cash and bank credit options.
The procedure for the transfer of prize bond ownership is explained in detail.

Additional Topics (pages 24-26)

Procedures for handling lost, stolen or damaged prizes are detailed.
Processes for issuing duplicates of prize bonds are detailed.
Processes and procedures for handling various types of cases are present (e.g defective, prize winning, etc).
Required formats including Form PPB-7, PPB-7A, are explained.

Additional Topics (pages 27-28)

The document lists the additional documents required for corporate investors.
The manual discusses details of various documentations.

Additional Topics (pages 29-30)

This section describes the draw procedure for Premium Prize Bonds.
The manual details the responsibilities and procedures involved in the draw process.
The procedures included in the draw process are detailed regarding different scenarios (e.g., correcting errors, handling issues, maintaining records, etc).

Additional Topics (pages 31-34)

This section details the handling of various prize bond cases including the processing, verification, and reconciliation of prize bond claims.
Information in the manual is categorized by case types.

Additional Topics (pages 35-38)

Procedures for handling transactions involving forged or tampered prize bonds are detailed.
Information regarding the responsibilities of officials in handling these cases.
Relevant forms and registers to be used for handling such situations are also identified (e.g., Register of Defective Bonds, Report PB-50).
The format and procedure required for handling and reporting prize bond related forgeries for specific scenarios are detailed.

Additional Topics (pages 39-41)

This document covers how to handle mutilated prize bonds.
Procedures are explained for cases related to defective prize bonds.
The steps for transferring, issuing, and accounting for prize bonds are outlined.

Additional Topics (pages 42-45)

Procedures for transferring prize bonds between parties.
The manual describes how to maintain a register of transferred bonds.
Procedures covering various cases are detailed here.

Additional Topics (pages 46-48)

This section is related to the verification of balances of defence saving certificates.
The process of checking, calculating, and reporting balance is described.
The manual illustrates how to identify and document cases of prize bond loss/destruction/theft.
The procedures are outlined for issuing replacement certificates with necessary information/documents and fees, and the required records.

Additional Topics (pages 49-51)

The list of prize bonds for re-issuable bonds (PB-35).
The process for creating, reviewing, authorizing and checking the prize bond list with the respective documents.
It outlines procedures that will be followed to fix the discrepancies and correcting errors in the PB-35 list.

Additional Topics (pages 52-55)

The process for listing defective bonds.
Procedures for destroying defective bonds.

Additional Topics (pages 56-58)

This section entails the process for crediting prize money to the government account.
The process of substituting prize bonds and the procedure for de-listing prize bonds are explained.
The rules, procedures, and required forms are outlined.

Additional Topics (pages 59-61)

This section details the process of crediting listed prize-winning bonds to the government. This includes the process of endorsing such bonds and details about the committee.

Additional Topics (pages 62-64)

This section covers the procedures and instructions for handling forged or tampered prize bonds, including reporting and handling cases of fraud.
The various procedures outlined entail handling different scenarios related to prize bond fraud.

Additional Topics (pages 65-68)

This section provides details on how to handle cases of defective prize bonds.
The manual explains the process for transporting prize bonds to PSPC for verification.

Additional Topics (pages 69-72)

This section details various forms required, including PPB-4, PPB-8, for handling prize bond transactions.

Additional Topics (pages 73-74)

This document provides a list of RTGS Bank Account titles for reference.

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Description

Test your knowledge on banking regulations and the management of bonds and certificates. This quiz covers various topics, including procedures for scheduled banks, commission structures, and bond draw details. Perfect for anyone studying banking and financial instruments.