Prize Bond Unit Business Process Manual PDF

Business Process Manual Prize Bond Unit SBP BSC Islamabad Office Business Process Manual Prize Bond Unit 1. SMALL PRIZE MONEY DIRECT CREDIT: 1.1 The operations of small prize money(Upto Rs. 18500/-) are processed and paid through the Small Prize...

Business Process Manual Prize Bond Unit SBP BSC Islamabad Office Business Process Manual Prize Bond Unit 1. SMALL PRIZE MONEY DIRECT CREDIT: 1.1 The operations of small prize money(Upto Rs. 18500/-) are processed and paid through the Small Prize money counter during banking hours either through Direct Credit in bank account(operated by Prize Bonds Unit) or through Cash over the counter(operated by Issue and Treasury Unit). 1.2. The Direct Credit prize money claim are submitted on the duly filled prescribed format (PB-23) at the counter by the claimant. The claim application form must accompany the following documents: a) Original Prize Winning Bond duly signed on reverse. b) Legible copy of prize winning bond on reverse. c) Legible copy of valid CNIC of the claimant. 1.3. The prize money claimant would be required to furnish the IBAN on the prescribed place of claim application form. It must be noted that the commercial bank account as provided by the claimant(s) in prize money application form(s) must be in his or her own name. Corporate Accounts or Business Accounts, Trust Accounts etc. will not be accepted. This fact must be brought to the knowledge of claimants before accepting their prize money claims. 1.4. The bank accounts maintained with conventional banks will only be accepted for direct credit of prize money. Accounts maintained with Islamic Banking institutions (i.e. full- fledged Islamic Banks, Islamic Banking Subsidiaries of Conventional Banks, Islamic Banking Branches and Windows of Conventional Banks) shall not be accepted, till an appropriate Shariah compliant account for accepting the prize money payment credits by SBP BSC, is developed. 1.5. The counter official will scrutinize the claim application form and attached documents thereof. The concerned official will also verify the genuineness of prize winning bond(s) with the help of available equipment i.e. Ultraviolet lamp & magnifying glasses etc. 1.6. If the claim & prize bond found in order, the counter official will input the data in T-24 system and verify particulars of bonds, i.e. date / place of issue of the bond as well as winning status of the bond in the respective draw. The T-24 system will show date and place of issue of the bond by default on inputting bond number. The details of versions have been provided in the below screenshot: 1.7. The counter official will exercise due care while recording the RTGS Bank Account as this account should be the commercial bank account maintained at SBP BSC Karachi office. The offices may use mnemonic of the respective bank provided at Annexure A of the BPM. 2 Business Process Manual Prize Bond Unit 1.8. After recording necessary information in the T-24 system, the transaction will be commit by counter official. Subsequently, the prize money claimant will be issued a system generated acknowledgment receipt. 1.9. For the purpose, the counter official will use “ACKNOWLEDGMENT RECEIPT” enquiry available in T-24 system and respective TT number. It must be noted that separate acknowledgement receipt will be generated for each TT number. 1.10. The claimant shall be advised to recheck the details i.e. IBAN & Bond numbers as mentioned in the acknowledgment receipt. 1.11. Further, the claimant`s acknowledgment shall be obtained on the prescribed place of claim application form, duly mentioning the face value of bond(s). 1.12. Subsequently, prescribed stamp(s) will be affixed on the reverse of the original prize bond & photocopy as well as on the claim application form. Additionally, punch hole will also be made on the original bond and claim will be passed. 1.13. The Maximum Turnaround Time (TAT) for processing of small prize money claims will be T+1. 1.14. The claim will then be forwarded to authorizer for further processing of the claim application form to Senior Officer PBU who will also verify the genuineness of bond(s) and attached documents. Senior Officer PBU will authorize the same in the T-24 system. 1.15. Once the transaction is authorized in T-24 system, the funds will be credited to the claimant`s bank account (IBAN) through RTGS. It must be noted that the deadline for authorization of these transactions is 4:30 PM, therefore, no transactions should be authorized in T-24 system after 4:30 PM. 1.16. In case the transaction remains unauthorized on the date of receipt, the same shall be processed and authorized on the next working day. Such transactions will remain ON HOLD at the day end. This fact should be shared with DAU at the time of confirmation of Close of Business (COB). 3 Business Process Manual Prize Bond Unit 1.16.1. The prize winning bonds which have not been processed / remain unauthorized in T-24 system on same day, may be kept in the Prize Bond Steel Box maintained by PBU in terms of Accounts Department Circular No. PBB/339/PB-1- 2001 dated February 13, 2002. Further, the offices shall also maintain a katcha register wherein statistics of prize bonds kept in and taken out from the box may be recorded.” 1.17. On the next working day, the concerned inputter will change the status of transaction to unauthorize from HOLD and process the transaction after changing the “Exposure Date” to “Today/Value Date” in the relevant version of T-24 System. 1.18. Both inputter and Authorizer will sign the endorsement stamp on the reverse of the bond besides putting signature over the prize money claim application form (PB-23). 1.19. The receipt / payment of prize money will continue throughout the day during banking hours. 1.20. At the close of business, the PBU officials will prepare & sign the vouchers after tallying the figures with T-24 system and deliver the vouchers to concerned quarters (PAU/DAU). 1.21. Since the face value of bonds received for prize money claim through this facility is also paid directly into the bank account of claimants, the original prize winning bond(s) will not be returned to the claimant, irrespective of the prize money amount. 1.22. The original prize winning bonds upto Rs. 9,300/- will be transferred to Issue & Treasury Unit against proper acknowledgment. Subsequently, these bonds will be deposited to PB vault and shall be treated as under: OPEN / SHUT PERIOD TREATMENT OPEN PERIOD The bonds will be re-issued to general public on the next working day of open period. SHUT PERIOD The bonds will be recorded in PB-35 valid. 1.23. All the retained bonds (prize money of Rs. 18,500/-) will be delivered physically to Issue & Treasury Unit against proper acknowledgment for consolidation and retention. 1.24. The encashed / retained bonds will reflect in “Individual stock” of the respective counter official. Accordingly, these bonds will be transferred through T-24 system using the version “Encash Stock Return [Teller to Box 1907]”. PBU will be required to maintain close coordination with the I&T Unit for timely delivery of encashed / retained bonds. 1.25. Issue & Treasury Unit will deposit the encashed / retained bonds along with other retained bonds into the Prize Bonds Vault for retention, as per the prescribed procedure for retained bonds. 1.26. Moreover, an enquiry titled “RTGS Acknowledgment Report” has been developed whereby the office can confirm transfer of funds to RTGS for onward credit to claimant’s bank account. 4 Business Process Manual Prize Bond Unit  SELF-AUDIT MECHANISM BY ACM PBU: i. The ACM PBU shall also put in place a self-audit mechanism, whereby the ACM PBU be required to check on random basis the prize money claim cases. ii. The details such as bond number and bank account number IBAN shall be checked by the ACM.  RETURN OF PRIZE MONEY BY COMMERCIAL BANKS: i. For all unsettled / returned prize money payment transactions, the respective commercial bank will intimate SBP BSC Karachi office along with the reason for return. ii. The SBP BSC Karachi will immediately execute the following transaction in the T-24 System, and record necessary information of claimant such as CNIC No., Reference TT No. in the remarks field for record purpose. Debit Respective Commercial Bank Account Credit “Sundry Payable NPB” Account (SBP BSC Karachi Account) iii. The SBP BSC Karachi office will maintain a database of the returned / unsettled transactions along with the details of claimant, TT number; return reason, status etc. for record and ready reference. iv. Subsequently, SBP BSC Karachi will transfer the funds through inter-company account to respective SBP BSC office, as illustrated below: Debit “Sundry Payable NPB” (Originating Company Account) Credit “Receivable / Payable ___________” (Responding Company Account) v. The SBP BSC Karachi office can use the reference TT number to ascertain the SBP BSC office that carried out the transaction. For the purpose, the structure of TT has been explained below: TT No. “TT1826206199.06” TT1826206199 06 Transaction System Code of Executing Number Office vi. The list of SBP BSC offices along with their T-24 system code is appended below for ready reference: S No. Name of Office 1 SBP BSC Karachi 2 SBP BSC Islamabad 3 SBP BSC Rawalpindi 4 SBP BSC North Nazimabad 5 Business Process Manual Prize Bond Unit 5 SBP BSC Lahore 6 SBP BSC Peshawar 7 SBP BSC Faisalabad 8 SBP BSC Multan 9 SBP BSC Muzaffarabad 10 SBP BSC Quetta 11 SBP BSC Bahawalpur 12 SBP BSC Sialkot 13 SBP BSC Gujranwala 14 SBP BSC D.I. Khan 15 SBP BSC Hyderabad 16 SBP BSC Sukkur vii. It may be noted that a sundry account under the title “Payable - Sundry NPB Prize Money DC” with mnemonic “PSNPB” has been opened in all SBP BSC offices, respectively. viii. Accordingly, SBP BSC Karachi will also share details of unsettled / returned prize money payment such as Claimant Name & CNIC, Bank Name, Prize Money amount, reason for return etc. with the respective SBP BSC office. ix. Reciprocally, the respective SBP BSC offices will be required to respond the entry originated by SBP BSC Karachi, in compliance with Account Department instructions issued vide circular No. AD(GL)/1015/03-2016 dated March 21, 2016. Debit “Receivable / Payable Karachi” (Originating Company Account) Credit “Sundry Payable NPB” (Responding Company Account) x. The respective SBP BSC office will be required to establish contact (in writing & verbally) with the respective prize money claimant for rectification of discrepancy i.e. reason of return. All efforts must be made by the SBP BSC office to ensure timely settlement of such transactions. xi. Once rectified, the concerned SBP BSC office will execute the following transaction in T-24 System for Prize money payment of prize winning bond: Debit “Sundry Payable NPB” (Respective Company Account) Credit Respective Commercial Bank Account maintained with the office xii. The respective SBP BSC office will then forward credit advice to the respective commercial bank for onward credit to the claimant`s bank account. The office will also be required to maintain close coordination with the respective bank for timely credit of the prize money into claimants bank. 6 Business Process Manual Prize Bond Unit xiii. All SBP BSC offices will also ensure maintenance of record, pertaining to unsettled / transactions and reconcile the balances in Sundry account on monthly basis. xiv. Course of action by SBP BSC Karachi and respective office of issue for some of the scenarios are attached at Annexure B.  RECONCILIATION OF PRIZE MONEY PAYMENT: i. The SBP BSC Karachi office will carry out the exercise of reconciliation on DAILY BASIS at the day end. ii. For the purpose, the Payment Systems Department (PSD) SBP will share the details of prize money payment made through RTGS / PRISM system. Upon receipt, the SBP BSC Karachi office will run the enquiry “MT103 - 036 Transactions” in T-24 system. iii. The SBP BSC Karachi office will match the data retrieved from T-24 system and the data shared by PSD SBP. The SBP BSC Karachi office will be required to reconciled the following areas: iv. Total Number of Transactions – Aggregate Basis (all offices) v. Total Value of Prize Money Paid – Aggregate Basis (all offices) vi. Number of Entries office wise – (office wise) vii. Total Value of Prize Money office wise – (office wise) viii. If found in order, an email will be sent to CMD HOK, PSD SBP, ISD SBP and SCAD HOK, confirming that the records have been reviewed and reconciled. ix. However, in case of any disparity in the data, the office will be required to identify unsettled transactions in RTGS and the same shall be reported to ISD SBP for generation of RTGS message, under intimation to PSD SBP. x. The office wise data can be extracted by using the reference TT number to ascertain the SBP BSC office that carried out the transaction as mentioned above. 2. BIG PRIZE MONEY DIRECT CREDIT: 2.1. Presently, the prize money claims exceeding Rs. 18,500/- are paid through direct credit of prize money & face value amounts to the claimant’s Bank Account. 2.2. For this purpose, the prize money is claimed through claim form called “PRIZE MONEY CLAIM FORM (PB-23)” (copy attached). 2.3. The commercial bank account as provided by the claimant(s) in prize money application form(s) must be in his or her own name. Corporate or Business Accounts, Trust Accounts etc. cannot be accepted. This fact must be brought to the knowledge of claimants before accepting their prize money claims. 7 Business Process Manual Prize Bond Unit 2.4. The bank accounts maintained with only conventional banks can be accepted for direct credit of prize money. Accounts maintained with Islamic Banking institutions (i.e. full- fledged Islamic Banks, Islamic Banking Subsidiaries of Conventional Banks, Islamic Banking Branches and Windows of Conventional Banks) cannot be accepted, till an appropriate Shariah compliant account for accepting the prize money payment credits by SBP BSC, is developed. UPLOADING OF DRAW RESULTS IN T-24 SYSTEM: 2.5. After completion of draw procedure, the concerned SBP BSC office forward the prize- winning list (scanned copy of the draw result with signatures of all concerned officials) to SCAD HOK with copies marked to CMD HOK and SBP BSC Karachi office through email. 2.6. The SCAD HOK then upload the list in T-24 system in "unauthorized" mode. Subsequently, SCAD forward T-24 extracted list (PDF version) to SBP BSC Karachi office for audit. 2.7. The Internal Monitoring Unit (IMU) of SBP BSC Karachi office audit the list with the draw result received from the respective SBP BSC. Once checked/audited, the Karachi Office then confirm the same to SCAD HOK. 2.8. Upon confirmation from Karachi office, the SCAD proceed with authorization of the draw result in T-24 system and accordingly advise all SPUs at SBP BSC offices to proceed with prize money payment for the respective draw and denomination w.e.f. next working day. 2.5. The timelines for the aforementioned process are given below: PAYMENT OF PRIZE MONEY & FACE VALUE THROUGH DIRECT CREDIT: 2.6. RECEIPT OF CLAIM: 2.6.1. Upon receipt of prize money claim, the following documents shall be obtained: a) Original and photocopy of prize winning bond(s), both duly signed by the claimant on the reverse side. b) Copy of legible valid CNIC of the claimant. c) Duly filled Prize Money Claim Application Form (PB-23) (Annexure - B). 2.6.2. Subsequently, the application form will be scrutinized by the counter official to ascertain if all the required documents & particulars are complete. Additionally, the confirmation of winning number in the respective draw will also be verified. The counter official will particularly verify validity of the bond by matching it with the list of the bonds that have been withdrawn from circulation. 8 Business Process Manual Prize Bond Unit 2.6.3. Further, the counter official of PBU will check the genuineness of prize winning bond through magnifying glass / ultra violet lamp. Additionally, the date and place of issue from the T-24 system will also be verified. 2.6.4. Moreover, the counter official will be required to check the title of account matches with the name of the respective claimant. 2.6.4. After the scrutiny of application form and attached documents, the counter official will record the information in T-24 System. For the purpose of direct credit, a separate version namely “Receipt of Big Prize Money Claim” has developed in the T-24 System and available under “Prize Money Payment Menu”, containing following necessary information: 2.6.5. The complete system generated ID for each winning bond is also recorded on the prescribed place of claim application form on obverse side. 2.6.6. Similarly, all the prize-winning bonds submitted along with the application form will be recorded in the T-24 system individually. 2.6.7. Subsequently, a single Acknowledgement Receipt containing particulars of prize bond(s) presented by the claimant will be issued using the enquiry “Print Acknowledgment Receipt” by selecting claimant CNIC and booking date. It must be noted that a single acknowledgment receipt will be issued for each application form irrespective of the number of prize wining bonds. 2.6.8. The matrix of authority to sign/counter sign the acknowledgment receipt of big prize winning bonds is as under: 9 Business Process Manual Prize Bond Unit 2.6.9. At the close of business hours, the counter official will hand over the bonds to Prize Bonds Unit (Back Office) for further processing. 2.6.10. The official of PBU at back office will carry out the authorization of “Receipt of Big Prize Money Claim”. 2.6.11. The PBU will keep the prize winning bonds in a separate steel box under the custody of ACM (PBU). At the close of business, the said prize-winning box should be properly locked and sealed in presence of the ACM PBU before depositing it into the vault. On the following working day, the steel box will be withdrawn from vault for processing the cases. 2.6.12. For the purpose of reconciliation, a statistical register on the format attached at Annexure C must be maintained with the steel box to record the bonds deposited and withdrawn from the box. Additionally, the bonds in said steel box should be reconciled with system-based record in PB-49(B). 2.7. PREPARATION / PROCESSING OF CLAIM BY PBU: 2.7.1. The claim application form will be subject to detailed scrutiny by concerned official to ensure that all the relevant fields are properly filed. 2.7.2. Subsequently, the concerned official of PBU will prepare the case for approval from the respective DCM / CM (as the case may be). The concerned official including IMU will also examine the genuineness of Prize Winning Bond by magnifying glass / ultra violet lamps and other IT equipment. Manual checking must be restricted to "feel" only, as "scratching" can damage the prize bond numbers. (Ref: CMD Circular No. CMD/GSSAD/PBU/PB- 1/2016- 309 dated February 26, 2016). 2.7.3. All prize bonds with prize money of Rs. 1 Million and above along with Prize Bond of Rs.15000/-will invariably be forwarded to Pakistan Security Printing Corporation (PSPC) for genuineness confirmation. However, in cases where the genuineness of prize winning bond(s) is doubtful, the same may also be sent to PSPC for genuineness confirmation, irrespective of prize money amount. 2.7.4. Moreover, punch hole and prescribed stamps i.e. “Endorsement” and “NOT FOR SALE” stamps will be affixed on the original prize winning bond(s). 2.7.5. Thereafter, necessary columns on the reverse of claim application form PB- 23 will be filled by recording in the columns meant for “Amount of Prize Money”, “Tax Deducted Amount” and “Net Amount payable” etc. 2.7.6. The ACM (PBU) will also check the whole case to ensure that all the particulars in claim application form are in order. 2.7.7. The entire case will be subject to pre-audit (first tier) by IMU official before proceeding with the approval from CM / DCM (as the case may be). 2.7.8. Approval for payment of prize money will be as unde 10 Business Process Manual Prize Bond Unit r 2.9 PAYMENT OF PRIZE MONEY AND FACE VALUE: 2.9.1. After approval of the case, the concerned official of PBU will record the transaction in T-24 system. The prize money cases will be processed in T-24 system by the PBU official as under: 2.9.2. The concerned Bank official will generate a FT number using the version “Payment of Prize Money – Single Prize Winning” version available under “Payment of Prize Money through Direct Credit” in T-24 system, for direct credit of Prize Money, Face Value and Withholding Tax amount to respective accounts. 2.9.3. The particulars i.e. Denomination, Draw and PO No. as per the ID will be recorded in the relevant fields of the aforementioned version. The T-24 system will automatically populate all other necessary information, which will be rechecked by the inputter. 2.9.4. The prize money on each prize-winning bond shall be processed by recording it individually in the T-24 system. 2.9.5. The concerned bank officials shall be required to verify the taxpayer status of the prize money claimant from the Active Tax Payer List on the day transaction is executed. The procedure for validation of Tax Payer Status as stipulated in CMD Circular No. CMD/GSSAD/PBU/PB-1/326/2016 dated July 1, 2016 will be followed. 2.9.6. The taxpayer status of the investor i.e. Filer or Non-Filer will be applicable as on the date of payment, irrespective of the details mentioned in the application form. Therefore, all prize money payment transactions (FT) will be executed only after checking the status on FBR Active Taxpayer List (ATL). 2.9.7. Subsequently, the inputter will commit the transaction in T-24 system and forward the case to Authorizer for authorization. The prize money cases will be processed in T-24 system by the PBU official as under: 11 Business Process Manual Prize Bond Unit 2.10. MULTIPLE PRIZE WINNING BONDS: 2.10.1. In case the bond in question is winning in multiple draws, the claim will be received on multiple application forms. 2.10.2. The particulars of claimant and prize winning bonds for each draw will be recorded separately in the version “Receipt of Big Prize Money Claim” on similar line to that of single prize winning bond. 2.10.3. After necessary approval, the PBU official will record the claim in T-24 system version “Payment of Prize Money – Multiple Prize Winning” available under “Payment of Prize Money through Direct Credit” where the particulars of OLDER draw will be recorded e.g. If the bond is winning in 60th draw and 70th draw as well, the particulars of 60th draw will be recorded. 2.10.4. After processing payment of older draw, the payment for LATEST draw will be processed using T-24 system version “Payment of Prize Money – Single Prize Winning” available under “Payment of Prize Money through Direct Credit”. 2.10.5. Once the prize money payment for Latest draw is processed in T-24 system the prize winning bond will be retained. TRANSFER OF BONDS TO VAULT:  After the credit of face value & Prize Money to the commercial bank account, Prize Bonds Unit will deliver the physical retained bonds to Issue & Treasury Unit against proper acknowledgment.  These bonds will be transferred through T-24 system using the version “Encash Stock Return [Teller to Box 1907]”. PBU will be required to maintain close coordination with the I&T Unit for timely delivery of retained bonds.  Issue & Treasury Unit will deposit the retained bonds along with other retained bonds into the Prize Bonds Vault for retention, as per the prescribed procedure for retained bonds. TAX DEDUCTION CERTIFICATE:  At the day end, particulars of all cases will be forwarded to FBR Staff for generation of PSIDs. The FBR official will be required to record both mobile number and email address of the respective claimant in the relevant field for automatic SMS / email alert to the claimant. 3. PREMIUM PRIZE BONDS: 3.1 INTRODUCTION:  The Central Directorate of National Savings (CDNS) initiated a registered prize bonds scheme called “PREMIUM PRIZE BONDS (REGISTERED)” parallel to the National Prize Bonds Scheme.  The said scheme is governed by “Premium Prize Bonds (Registered) Rules, 2017”.  These Bonds are being issued by registering each bond in name of Investor(s).  These bonds have both prize money as well as profit on investment.  The investor of these bonds shall mandatorily have a bank account maintained with any commercial bank in Pakistan. 12 Business Process Manual Prize Bond Unit  Initially, there are two denominations i.e. Rs. 40,000/- and Rs. 100,000/-.  At Present, these Bonds are being issued through selected offices of State Bank of Pakistan Banking Services Corporation (SBP BSC). The Central Directorate of National Savings (CDNS) may authorize any office for sale of these prize bonds in consultation with SBP BSC. 3.2 OUTLINE OF THE SCHEME:  These Bonds are issued as a Central Government Debt, to be treated as a Government Registered Prize Bonds.  The bonds may be purchased by any of the following:  A single adult  Two adults in their joint names  Payable to holder jointly or payable to either with written consent of the other called “Joint Class A” or  Payable to either called “Joint Class B”.  A public or private sector institution / organization, excluding Banks, Insurance Companies and Mutual Funds.  All policy related matters / rules pertaining to this scheme shall be devised by the CDNS in coordination with SBP BSC.  The bond shall be issued for an unlimited tenure and shall remain valid for prize money and/or profit (if any) till such time it is either encashed by the registered holder or withdrawn by the Government of Pakistan.  The application for purchase of the bonds must be made, in prescribed application form(s) obtainable free of charge from the office of issue and shall be accompanied with mandatory documents as specified by the bank.  Sale and Encashment of Bonds will continue till such time as Central Government notifies closure / discontinuation of Bonds in the Gazette of Pakistan.  Each bond shall have a unique alpha-numeric number where the alpha denoted the series and the number reflects bond serial number e.g. A123456.The series of prize bonds shall be issued in sequential order except I & O which will not be used as series.  Each series of bonds consists of one less than a million pieces of bonds i.e. from 000001 to 999,999.  The bonds are redeemable any time after issuance.  The holder of the bond through prescribed application can transfer his title to another person. After transfer of title the former shall relinquish all his claims in terms of principal, profit and prize money.  The profit on these bonds shall be paid to the registered Investor(s) through direct credit to bank account on bi-annual basis for each completed period of six months. 13 Business Process Manual Prize Bond Unit  The profit rates will be notified by the Federal Government in the Official Gazette from time to time.  No profit shall be paid on bond(s) if encashed before completion of six months period either from the date of issuance or last profit received/paid.  Each bond of Rs. 40,000/- and Rs. 100,000/- denomination issued before two months and three months respectively preceding the date of draw shall qualify for a prize in the forthcoming draw and all subsequent draws.  Rs. 40,000/- and Rs. 100,000/- denomination bonds held by the public for a period of two months and three months respectively or more from the date of their issuance, if encashed at the SBP BSC or authorized offices before the announcement of the results of draw in the Gazette Notification will not be awarded prizes even though they may win prizes.  Draws shall be held on quarterly basis, or any other frequency as notified by the Finance Division in the official Gazette from time to time.  The draw schedule of these bonds shall be announced by Central Directorate of National Savings at the start of each calendar year.  The draw result of these bonds shall be published in the official Gazette by CDNS.  The number and amount of prizes to be awarded on each series of bonds in each draw shall be specified as below:  The bonds may be pledged as collateral, three months after the date of issue.  Investment made under this scheme, payable profit and prize money thereof, shall be exempt from compulsory deduction of Zakat. 3.3 PRINTING AND SUPPLY OF BONDS:  All bonds are printed by Pakistan Security Printing Corporation (PSPC) as approved by CDNS in consultation with SBP and SBP BSC.  All Bonds will be printed in lots of one less than a million pieces which will be numbered in serial order running into six digits. These numbers will be preceded by single and thereafter double and so on alphabets viz. A,B,C etc., AA, AB etc., BA, 14 Business Process Manual Prize Bond Unit BB etc. Each such complete lot will be known as Series of Bonds. With a view to avoid numerical confusion, the alphabets “I” and “O” will not be printed / used as series. 3.4 Indent Placement Process: Based on the general public demand of bonds, the indent for fresh Bonds will be placed as per the following procedure:  Currency Management Department SBP SBC shall initiate indent placement process by intimating CDNS about the number & series of bonds required to be printed of each denomination.  CDNS, in coordination with PSPC, shall finalize the printing cost for printing & supply of fresh bonds as per SBP BSC requirement.  Subsequently, CDNS will approve the printing & supply cost in writing to PSPC with a copy to CMD HOK.  Accordingly, 99% of total printing cost will be paid to PSPC through SBP BSC. Whereas the remaining 1% would be paid subject to completion of 100% delivery of printed Bonds. However, the payment plan of 99% advance payment and 1% payment on completion of delivery is not mandatory. CDNS / Ministry of Finance may alter / amend the payment plan as deemed appropriate.  Thereafter, CMD HOK will provide the PDO (Karachi and Lahore) wise allocation to PSPC for indent of bonds.  Subsequently, PSPC would share the delivery schedule to SBP BSC.  Bonds after having been printed and numbered will be made into packets of 100 pieces each and thereafter each packet will be wrapped into bundles of each of 10 packets.  Before delivery to the SBP BSC, Bonds will be packed by the PSPC into “Heat Shrink Plastic Bundle”. On the outer sides of the cases there will be adequate marks to indicate that the boxes contain bonds of specific series and Denomination. 3.5 Delivery of Bonds by PSPC:  Based on the general public demand, the series wise allocation to both Public Debt Offices shall be decided by CMD.  PSPC will arrange supply and delivery of the consignment to respective Public Debt Offices as per the PDO wise allocation provided by CMD HOK. 3.6 Receipt & Examination of bonds at PDOs:  The bonds received from PSPC shall be subject to detailed counting and examination before transferring into stock.  Bonds will be received by ACM/In-charge (PB) and a representative of DCM (Cash)/Senior Officer (Treasury) at each Public Debt Office.  Delivery of bonds would be taken from PSPC representative in same manner as in case of bearer prize bonds and these bonds will be subjected to cent percent examination for quantity in presence of PSPC representative. However, responsibility for desired quality of bonds would rest with PSPC only.  Immediately on receipt, the boxes of bonds will be entered / recorded in a Register of Premium Prize Bond received from PSPC (40KRB-2 for Rs. 40,000 denomination and 100KRB-2 for Rs. 100,000 denomination) to record the details of bonds received. 15 Business Process Manual Prize Bond Unit  Subsequent to 100% examination in presence of PSPC representative, Bonds would be taken into stock account Stock Register (40KRB-3 or 100KRB-3) respectively and will be transferred to Sealed Area.  The bonds will be withdrawn from sealed area with the approval of Director CMD, in same manner as in case of bearer prize bonds.  Each almirah / bin containing Premium Prize Bonds will have a pass book in Form No.I-4 wherein deposit and withdrawals of Bonds will be recorded. For convenience, each receptacle will have a label attached to it indicating the serial number of bonds kept therein. 3.7 Supply of Bonds to other SBP BSC Offices:  The Public Debt Offices will be responsible for the supply of bonds to other SBP BSC offices under their jurisdiction with the permission of Currency Management Department, Head Office Karachi. 3.8 Offices of Issue:  Initially these bonds will be sold to general public from five SBP BSC offices only i.e. SBP BSC Karachi, Lahore, Peshawar, Quetta and Islamabad.  These bonds shall also be sold from all SBP BSC Offices at a later stage for which separate instructions will be issued from CMD. 3.9 Organization:  “Prize Bonds Division” at both PDOs will be responsible to deal with the work relating to issue of Bonds.  Prize Bonds Unit (Central) at the Karachi PDO, will be responsible to centrally manage sales & encashment of bonds. Prize Bonds Unit (Central) will maintain central issue and encashment accounts of bonds and the Prize Bonds Division set up at each Public Debt Office will furnish the desired returns and statements.  Jurisdiction of PDOs with regards to issue and management of this scheme will be the same as it is in regard to National Prize Bonds Scheme. 3.10 Sale of Bonds:  As per Premium Prize Bond (Registered) Rules 2017, purchase of Bonds may be made by any of the following methods:  Cash  Bank draft  Cross Cheque  Pay order  All cheques / bank draft / POs presented must be payable to “SBP BSC__________” (name of the office where application is being submitted).  Bonds will be sold in consecutive serial numbers. The office of issue will be required to constantly monitor the stock position of bonds being sold.  The office of issue will seek prior permission from CMD, Head Office while putting a new series on sale, as per practice in vogue for National Prize Bonds. 16 Business Process Manual Prize Bond Unit 3.11 Issuance of Stock:  At start of day, bonds will be taken out from vault into premium prize bond box balance and record the same in Register of Premium Prize Bonds issued from Vault (40KRB-4/100KRB-4). Acknowledgment of the transfer should be invariably obtained on the prescribed place on the respective register.  The Premium Prize Bonds Box Balance shall remain under the custody of Senior Officer (Treasury) In-charge National Prize Bonds Box Balance. Box Balance Register (40KRB-5/100KRB-5) should be maintained by the custodian of box balance to record in and out of stock.  The Treasury Cash Unit counter officials will be issued bonds from the box balance for the purpose of sale and record the same in Register of Bonds Issued from Box to Counters (40KRB-6/100KRB-6).  The Treasury Cash Unit counter officials will maintain Counter Official Balance Register (40KRB-7/100KRB-7) to record particulars of the Bonds i.e. Series, serial numbers and total pieces received and issued to general public. Further, system based Teller Cash Register (40KRB-7A/100KRB-7A) shall also be maintained.  At the end-of-day, the Tellers will surrender unsold balance of bonds to the In- Charge box balance who will take delivery and deposit the same in the vault. Necessary entries will be made by the box balance in-charge in Register of Bonds Received by Box from Counters (40KRB-6A/100KRB-6A). 3.12 Sale of Bonds:  Two adjacent counters i.e. one for Prize Bond Unit and one for Treasury Cash Unit officials will be reserved for the sale of bonds.  Application Form for the purchase of Premium Prize Bonds (PPB-1),duly filled by the applicant, will be received by Treasury Cash Unit counter official who will forward the case to Prize Bond Unit counter officials. However, a simple scrutiny of the application form and relevant documents should be performed by the Treasury Cash Unit official.  Upon receipt of application form, the Prize Bond Unit official will scrutinize the application form and relevant documents / information by checking the following as per the requirements for each type of investor i.e. Individual or Corporate: a. Date of Application b. Name of Investor / Firm c. Authorized Signatories d. Father/ Husband name e. Address f. CNIC Number / NTN / FTN g. Mobile Number / Landline Number h. Tax Payer Status (Filer or Non-filer) i. Denomination and Number of pieces of bonds 17 Business Process Manual Prize Bond Unit j. Payment Mode (Cheque / Cash / Pay Order etc) k. Operating Instructions (Single / Joint) l. Bank Account details (IBAN) (Account details should tally with the Account Maintenance Certificate provided along with the application). m. Other details (if any) as specified form time to time.  The duly filled application form must be accompanied by the following documents: i. For Individual Investors: a. Legible copy of valid CNIC / SNIC (Original Seen) b. Account Maintenance Certificate (not older than one month from the date of application) of the IBAN Number provided in the application form mentioning Bank and Branch Name, Title of Account, Account Number and IBAN (Required at the time of registration or change of Account Number). ii. For Corporate Investors: a. NTN / FTN. b. Legible copy of valid identity documents CNIC / SNIC / NICOP (Original Seen) of Authorized Signatories. c. Account Maintenance Certificate (not older than one month from the date of application) of the IBAN Number provided in the application form mentioning Bank and Branch Name, Title of Account, Account Number and IBAN (Required at the time of registration or change of Account Number). d. Additional documents as specified in Appendix-A. 18 Business Process Manual Prize Bond Unit 3.13 Sale of Bonds against Cash  After verifying the details on the application form, the official will register the details of investor in T-24 System using the relevant versions separately “Registration – Individual” for Individual and “Registration - Corporate” for Corporate Investor.  After registering the investor in T-24 System, the official will hand over application form to the Treasury Cash Unit official.  The official will receive the amount of cash as indicated in Application Form (PPB- 1) and record it in relevant version of T-24 System “Cash Receipt” in bond sale menu duly authorized by the authorizer.  A stamp of “CASH RECEIVED” will also be affixed on application form with initials at the prescribed place.  Due care should be exercised by the official to avoid obliteration of the entries on the application while affixing stamp.  Subsequently, the official will issue bonds in system by entering the details in respective version of T-24 System “Bond Sale”.  The official will also ensure that bonds put on sale are available with him and forward the case to Authorizer for authorization of the same in T-24 System.  Authorizer will invariably check and verify details both in the T-24 System and Application form, prior to authorization.  Subsequently, the case will be audited by Internal Monitoring unit (IMU).  After completion of audit, the case will be returned to the counter official who will affix date & place of issue stamp on the face of the bond(s).  Subsequently, the bonds will be issued to the investor(s) with the acknowledgement on the prescribe place of application form.  At the day end, the cash received throughout the day will be surrendered by the Treasury Cash Unit counter officials to evening collection. 3.14 Sale of Bonds against Cheque:  The Application form, if accompanied by a Cheque/Payment Order/Demand Draft, should be accepted by the Prize Bond Unit counter official.  The official will scrutinize the application form and relevant documents / information by checking the details provided above.  After verifying the details on the application form, the official will register the details of investor in T-24 System using the relevant versions separately “Registration – Individual” for Individual and “Registration - Corporate” for Corporate Investor as the case may be. Authorizations will be made by the concerned authorizer.  The official will then issue a Provisional Receipt (PPB-4) to the investor with the advice to receive the bonds after three (03) working days.  The provisional receipt (PPB-4) will be issued in triplicate i.e. one for office record (PPB-4A), one for PAD / PAU (PPB-4B), and one for the investor (PPB-4C).  All instruments received during the day shall be sent to PAD/PAU for lodgment in Outward Clearing by recording in the newly developed version.  The case shall be forwarded by the Prize Bond Unit official to PAD/PAU through cover letter in Form PPB-5 along with original instrument and PPB-4B.  Upon realization of proceeds, the amount shall be credited to the respective Government Account. Public Accounts Unit (PAU) will intimate realization of proceeds (in Form PPB-5) against the respective instrument mentioning therein the transaction ID (CL/CD/FT number) of the respective case. 19 Business Process Manual Prize Bond Unit  Subsequently, the case will be forwarded to Treasury Cash Unit official who will issue bonds in T-24 System by entering the details in respective version of T-24 System “Bond Sale” duly authorized by the authorizer.  The Authorizer will invariably check and verify details both in the T-24 System and the Application form, prior to authorization.  Subsequently, the case will be audited by Internal Monitoring unit (IMU).  After completion of audit, the concerned official will affix date & place of issue stamp on the face of the bond(s). It is imperative to mention that date of issuance in such cases shall be actual date of realization of proceeds and not the date of application or date of delivery of bonds  The undelivered bonds (if any) shall be transferred to DCM Cash custody and will be delivered subsequently. For this purpose a Statistical Register (RB-16) shall be maintained to record movement of the bonds.  The bonds shall be delivered to the investor or authorized representative against proper acknowledgement on the prescribe place of application form upon submission of Provisional Receipt (PPB-4C) earlier issued to the investor.  In case the cheque/instrument is returned by the commercial bank for any reason, photocopy of the returned cheque/instrument and return memo shall be retained and attached with the application form. Cheque/instrument shall be handed over to the investor after surrender of provisional receipt and acknowledgment on the copy.  At End-of-day, Sale Register (40KRB-8/100KRB-8) shall be generated from T-24 System and retained with the office. A duly signed hard copy of Register of Consolidated Sales (40KRB-9/100KRB-9) shall also be maintained as per the format provided. The statements must be prepared by concerned Prize Bond Unit officials and checked by ACM & DCM Prize Bonds. 3.15 Encashment of Bonds:  These bonds can only be encashed from the office of issue irrespective of date of issue.  The registered investor shall be required to fill an Application Form (PPB-2) along with the following documents at the time of encashment: i. Original Premium Prize Bond duly signed on reverse. ii. Legible copy of valid CNIC/ SNIC (original seen) iii. Any other document (if any) as specified from time to time.  The concerned official posted at encashment counter will examine the original bond(s) and other documents to ascertain: i. The identity of the applicant. ii. Genuineness of the bonds. iii. The alpha-numeric serial numbers and date & place of issue. iv. Office of Issue (the office of issue and encashment should be same). v. The bonds are registered in the name of applicant. This can be achieved by checking T-24 System record.  The investor of the bond can either choose encashment through cash or through Direct Credit to his bank account. 3.16 Encashment through Cash:  After verification of details / documents, the counter official will record details of bonds to be encashed in the relevant version of T-24 System “PPB Encashment” duly authorized by the authorizer. 20 Business Process Manual Prize Bond Unit  The counter official will then record the transaction in T-24 System using a separate version “Encashment through Cash Payment”. This transaction will also require authorization by the authorizer.  “ENCASHED” stamp on the face of bond, while “PAID” stamp on the application form will be affixed. The date of encashment will also be stamped on the face of the bond.  Subsequently, the case will be audited by Internal Monitoring unit.  The investor will be paid cash and acknowledgment obtained at the prescribed place of application form. 21 Business Process Manual Prize Bond Unit 3.17 Encashment through Direct Credit:  In case of direct bank credit, the bank official will verify the details of the bond and record the transaction in relevant version of T-24 “Encashment through Bank Credit”. This transaction would require proper authorization by the Authorizer.  The investor of the bonds will be issued and Acknowledgment receipt in Form PPB-8.  An advice in Form PPB-6 will be forwarded to the concerned bank with the advice to credit the respective account of investor after audit of the case by Internal Monitoring unit (IMU).  The account number must tally with the details provided by the applicant at the time of purchase of bonds in question. However, incase the registered owner has submitted details of any other account and the same is on record it will also be accepted.  At End-of-day, the Treasury Cash Unit counter officials will maintain system based Teller Cash Register (40KRB-10A/100KRB-10A).  Encashment Register (40KRB-10/100KRB-10) shall be generated from system and maintain a duly signed hard copy of it. Further, Register of Consolidated Encashment (40KRB-11/100KRB-11) shall also be maintained as per the format provided. The statements must be prepared by concerned Prize Bond Unit official and checked by ACM & DCM Prize Bonds. 3.18 Procedure For Destruction Of Encashed Ppb(S):  No Duplicate Bonds, in lieu thereof, will be printed and issued. Such bonds will be put out of circulation permanently by destroying them after observing the procedure as under: i) All PPBs once encashed shall be retained in the vault for safe custody after observing all the required formalities on daily basis. ii) It is imperative that all prize money, profit and face value amounts (as the case may be) are settled in the account of registered investor before proceeding with the destruction. iii) It must be ensured that all such PPBs are properly recorded / listed in Register of Destruction (40KRB-12 / 100KRB-12) duly audited by IMU. iv) Encashed bond(s) must be destroyed one day before the date of the subsequent draw. Prior to proceeding with destruction, the bonds should be made up in packets of 100 and remaining in chit packets.Accordingly these bonds would be defaced by punching holes with the help of Note Punching Machine to remove the series and portion of the number appearing on the bonds. Thereafter the bonds will be subjected to cent per cent counting. v) Upon complete verification, these bonds would be destroyed using‘shredding machines’ as per the procedure adopted for destruction of National Prize Bonds. vi) Subsequently, a certificate to the effect mentioning number of bonds have been destroyed, will be given by the authorized committee (authorized by CM in writing) concerned which will be kept on record and copy thereof will be forwarded to the Director General, CDNS and CMD, HOK for information. vii) Since such bonds have been out of circulation permanently the question of payment of the prize money, if any, subsequently declared there against to any one or by credit to Govt. Account does not arise. 3.19 TRANSFER OF BONDS:  Transfer of bonds shall only be available to individual investors. 22 Business Process Manual Prize Bond Unit  The transfer of ownership from one person to another person shall be as per following procedure: i. The registered owner of the bond(s), if so desires, may transfer ownership to another person. ii. For this purpose, an Application for Transfer of Ownership (PPB-3) duly filled in shall be submitted at the office of issue. iii. The following documents will be required along with application form: a. Original Bonds to be transferred b. Legible copy of valid CNIC/SNIC of transferor (Original Seen) c. Legible copy of valid CNIC/SNIC of transferee (Original Seen) d. Account Maintenance Certificate (AMC) of transferee (not older than on month from the date of application) of the IBAN Number provided in the application form. In case the investor is already registered AMC shall not be required.  Transferor of bond(s) before the completion of six months period either from date of issuance or date of last profit paid will not be paid any profit for the broken period.  On receipt of the application for transfer, counter official will scrutinize full particulars as required therein the application form.  The signature of the applicant should be verified with the original application for the purchase of the bond(s) / CNIC. The concerned official will record the entry in relevant version of T-24 System duly authorized by the Authorizer.  Subsequently, the case will be audited by Internal Monitoring unit (IMU).  Transfer of prize winning bonds from Transferor to Transferee will only be allowed subsequent to settlement of outstanding prize money in the registered investor’s account.  At the end of day Register of Transfer (40KRB-14/100KRB-14) shall be generated from T-24 System. Duly signed hard copy of this register will invariably be maintained by the office. 23 Business Process Manual Prize Bond Unit 3.20 LOSS OF PREMIUM PRIZE BOND(s)  In case of loss of a bond, the registered investor shall submit an application,on the prescribed format, to the office of issue for issuance of new bond with new serial number in lieu of lost bond(s) equivalent to the face value.  The registered investor should submit application Form PPB-7/ PPB-7A providing complete particulars of the bond(s) i.e. Series & Serial No.(s),Denomination, Date of purchase and details of loss of bond(s) etc. However, in case of corporate investors(s), the request must be accompanied with a letter company’s letter head duly signed by all signatories (irrespective of operating instructions) clearly mentioning details of lost bonds with a request to issue new bonds.  The concerned bank official in the office of issue shall receive the form PPB-7/ PPB- 7A (as the case may be) and perform initial scrutiny of the form for completeness of required information. Subsequently, the application shall be processed and a fresh bond equivalent to the face value of the lost bond with new serial number will be issued in the name of registered owner.  All such bonds will be treated as encashment cases as per the procedure prescribed above withh following remarks to be invariably recorded in the narration of encashment version.  “Premium Prize Bond(s) encashed in lieu of lost of bond(s) bearing number______________________ against application dated ________________________”  Registered Investor’s signature should be as per the CNIC / original application form i.e. Purchase or Transfer.  Subsequently, new bonds shall be issued to the registered investor as per prescribed above.  Duly signed Register of Lost Reported Premium Prize Bonds (40KRB-17 & 100KRB-17) shall invariably be maintained by all SBP BSC offices.  Remarks “Lost Premium Prize Bond no._________________ encashed dated__________” on the purchase / transfer application form shall also be recorded.  If the bond reported lost, stolen or destroyed is presented for encashment, payment, the matter may immediately be referred to CMD for guidance. General Guidelines:  Currency Transaction Report (CTR) requirements for every cash based transactions of Rs. 2.0 Million or above shall also be applicable at sale and encashment of Premium Prize Bonds.  Offices may use manual stamps for affixing date and place of issue stamp on the face of Premium Prize Bonds.  A duly signed copy of following Registers must be forwarded to CMD on daily basis. a. Register of Consolidated Sales (40KRB-9/100KRB-9) b. Register of Consolidated Encashment (40KRB-11/100KRB-11)  Statement showing Bonds Owned by an Investor (RB-15) is also available in T-24 System for verification purpose.  Concerned inputter and authorizer must duly initial every transaction of the system generated reports.  Any cutting / overwriting / mutilation must be authenticated by applicant with full signatures as per CNIC / SNIC. Further, application form(s) with more than two cutting / overwriting by the applicant will not be accepted. 24 Business Process Manual Prize Bond Unit Registers, Forms and Statements  Following registers and statements shall be maintained at Office of issue. 25 Business Process Manual Prize Bond Unit  Following Forms will be used for the purpose specified against thereof. 26 Business Process Manual Prize Bond Unit 27 Business Process Manual Prize Bond Unit ADDITIONAL DOCUMENTS REQUIRED FOR CORPORATE INVESTOR Identity Documents: 1. For Firm`s Identity: a) National Tax Number (NTN)/ Sales tax registration. 2. For Authorized Signatories Identity: a) Computerized National Identity Card (CNIC) issued by NADRA. b) National Identity Card for Overseas Pakistani (NICOP) issued by NADRA. c) Pakistan Origin Card (POC) issued by NADRA. 1. Sole Proprietors a. Registration certificate for registered firms. b. Certificate or proof of membership of trade bodies etc, wherever applicable. c. Declaration of sole proprietorship on business letterhead. 2. Partnership a. Legible Photocopies of Valid identity documents of all the partners. b. Attested copy of ‘Partnership Deed’ duly signed by all partners of the firm. c. Attested copy of Registration Certificate with Registrar of Firms. In case the partnership is unregistered, this fact shall be clearly mentioned. d. Authority letter from all partners, in original, authorizing the person(s) as Authorized Signatories. 3. Limited Companies/Corporations a. A letter from commercial bank confirming that the said Account will be used for purchase, encashment, profit and prize money payment. b. Certified copies of: i. Resolution of Board of Directors for investing in Premium Prize Bonds specifying the person(s) as authorized signatories. ii. Memorandum and Articles of Association; iii. Certificate of Incorporation; Certificate of Commencement of Business, wherever applicable; iv. List of Directors on ‘Form-A/Form-B’ issued under Companies Ordinance 1984, as applicable; and latest Form-29, wherever applicable. c. Legible Photocopies of Valid identity documents of all the directors. 4. Trust, Clubs, Societies and Associations etc a. Certified copies of: (a) Certificate of Registration/Instrument of Trust (b) By-laws/Rules & Regulations b.Resolution of the Governing Body/Board of Trustees/Executive Committee, if it is ultimate governing body, for investing in Premium Prize Bonds duly mentioning Authorized Signatories. c. Legible Photocopy of valid identity document of the members of Governing Body/Board of Trustees /Executive Committee. 5. NGOs/NPOs/Charities a. Certified copies of 28 Business Process Manual Prize Bond Unit i. Registration documents/certificate ii. By-laws/Rules & Regulations b. Resolution of the Governing Body/Board of Trustees/Executive Committee, for investing in Premium Prize Bonds duly mentioning Authorized Signatories. c. Legible Photocopy of valid identity document of the members of Governing Body/Board of Trustees /Executive Committee. 6. Government Departments a. Special resolution/authority from the concerned administrative department duly endorsed by the Ministry of Finance or Finance Department of the concerned Government. b. In case of autonomous entities and Armed Forces including their allied offices, on the basis of special resolution/authority from the concerned administrative department or highest executive committee/management committee of that entity duly endorsed by their respective unit of finance. DRAW PROCEDURE FOR PREMIUM PRIZE BONDS (REGISTERED) 1. PREAMBLE 1.1. All draws for Premium Prize Bonds (Registered) shall be conducted at selected State Bank of Pakistan Banking Services Corporation (SBP BSC) offices by manually under the Single Common Draw System as per the Draw Schedule issued by Central Directorate of National Savings (CDNS) every year. 1.2. These draws shall be supervised by the Draw Committee constituted by the concerned Regional Directorate of National Savings (RDNS) under intimation to SBP BSC and CDNS. 1.3. The RDNS will also arrange for the special children from Special Educational Institutions, for operating Hand Operated Draw Machine to construct the winning numbers during the draw. 1.4. The Committee will be comprised with the following: 1.5. All the visitors / members of general public will be allowed to witness the draw proceedings upon submission of CNIC at the reception counter. 2. FUNCTIONS OF DRAW COMMITTEE 2.1 Chairman 2.1.1 The Chairman will preside over the functions and will be responsible for ensuring that the draw takes place strictly according to the approved method. 2.1.2 At the commencement of the draw, he/she will ensure that the machines are operated a couple of times before commencement of the actual draw and well in working order. 29 Business Process Manual Prize Bond Unit 2.1.3 He / She will also ensure that the members of the Committee are present at all times during the draw and do not leave the centre till completion of draw. 2.1.4 He / She may offer suggestions to CDNS in writing for making the Prize Bond Draws more attractive. Recommendations so made though not binding on CDNS or SBP BSC, shall be evaluated on their merit by CDNS in consultation with SBP BSC, and the same may be implemented if found feasible. 2.1.5 He / She will also ensure that members of the Draw Committee have understood their duties and responsibilities assigned to them. 2.2 Secretary: 2.2.1 The Secretary will be responsible for the overall arrangements of the draws, viz. security, sitting arrangements etc. 2.2.2 He / She will visit personally the location before the draw to ensure proper and satisfactory arrangements. 2.2.3 He / She will also ensure display of fitness certificate issued by HMC with the respective machine at the time of draw. 2.2.4 He / She will ensure at least four machines are available in working order for smooth functioning of the draw as per the fitness certificates obtained from Engineering Department. Further, the fitness certificate should also contain the remarks that all 6 (six) disks containing ten numeric digits from 0 to 9, properly colored and perfectly carved in different random order on the respective disks. A copy of the certificate should also be submitted to HOK one day before the date of draw. 2.2.5 A certificate from the members of the draw committee and general public should also be obtained in respect of the fitness of draw machine before commencement of the draw process and copy thereof will be submitted to HOK. 2.2.6 He / She will also ensure that the machine is placed in such a manner that the digits on the wheel are visible to the public as well as to the official of calling/inputting numbers. 2.2.7 He / She will maintain a Register in Form RB-42A & RB-42B personally. All winning numbers will be recorded in this register by him / her and each entry initialed by him / her and one member. 2.2.8 He / She will also be responsible for arranging the checking of void numbers (if any). 2.2.9 He / She will also ensure that the movie camera is in right position and working properly. 2.3.1 To supervise the operations of the machines. 2.3.2 To ensure that the draws take place uninterrupted and in the prescribed manner. 3. DRAW PROCEDURE: 3.1. The draw is to be conducted using the Hand Operated Draw Machines (HODMs) manufactured by Heavy Mechanical Complex, Taxila (HMC). Fitness certificate issued by HMC shall also be displayed with the respective draw machine at the time of draw. 3.2. In order certificate from Engineering Department of SBP BSC should also be obtained in respect of machines to be used in the draw. 3.3. All draws will start with recitation from the verses of Holy Quran and the draw secretary will brief the participants regarding the draw process. 3.4. Prior to commencement, all machines must be checked by the members of draw committee and four representatives from the general public for their satisfaction and confidence building. A certificate duly signed by them shall be obtained and retained along with a copy of CNIC. 30 Business Process Manual Prize Bond Unit 3.5. Special students invited for the purpose will pull the lever of the machine and 10 digits in each disk/cube from 0 to 9 around the rod rotate simultaneously, freely and independently. When the disc/cubes stop, a 6 digits displayed through the six windows will be declared winning. 3.6. 1st & 2nd prizes (i.e. 04) of each denomination will be drawn using separate machines with different special children separately by using four (04) machines. The winning numbers shall be announced twice i.e. from left to right as well as right to left. However, in case of 3rd prize winning numbers shall be announced from left to right only. 3.7. The special child shall be replaced on completion of maximum 20 strokes on Hand Operated Draw Machines (i.e. pulling up of lever of HODM). Special child may also be replaced as and when they observe that the handle of HODM is pulling by him at uniform movement or when demanded by the member of general public. 3.8. Each winning number should be recorded by the secretary in the Register PB-42 after announcement of the same by the member of RDNS/NSC concerned as well as recording of the same by the concerned officials on the white/black board/computer or displaying on multimedia simultaneously. 3.9. The number recorded by the Secretary should be legible and duly initialed by him/her as well as the member of draw committee from RDNS/NSC concerned in the prescribed column of the said register. 3.10. Correction if un-avoided in any digit or entire winning number, the entire number should be cancelled by marking two cross (i.e. left and right side of the number) and the same number should be re-written over the cancelled number with the red ink duly initialed by the Secretary and one member of draw committee along with cogent reasons for cancellation thereof. 3.11. If the same number is constructed twice, word ‘VOID’ will be recorded along with the serial number at which first number was constructed in the remarks column of the number appearing second. 3.12. The SBP BSC Official will take out print of one sheet (in random order) after completion of PB-42A and handover the same to IMU for audit. Similarly PB-42B as and when completed, will also be audited by the IMU of the concerned office. 3.13. After auditing (in random order) sheet, the draw result will be arranged by the SBP BSC official in ascending order and print thereof again taken out for cent percent (100%) auditing of the same by IMU. 3.14. After signing PB-42 Registers by the Chairman, Secretary and Members of Draw Committee, the draw result will be sent to all quarter concerned through Compact Diskettes (CDs i.e. read only) as well as Hard copies of the draw result duly signed by the Secretary of the Draw Committee as per Draw letter by HOK. 3.15. The draw process shall be completed within office hours ensuring that the Draw for 1st prize is held at 9:00 am sharp. 3.16. All the above process should be covered by movie camera. 3.17. The Activity Report of the draw containing timings of all steps of draw ceremony (as per the format), duly signed by the Members of Draw Committee shall be submitted to CMD ,HOK. 4. HONORARIUM/REFRESHMENT 4.1. Honorarium will be paid to the non-official members of the Draw Committee as per below table: 31 Business Process Manual Prize Bond Unit 4.2. Light Refreshment shall be served to the 50 guests as per approved rate of Rs. 30/- per person. National Savings Schemes: The sale, encashment and other activities of National Savings Scheme are governed by the Defence Savings Certificates Rule, 1966 issued by the Government of Pakistan, Ministry of Finance through Notification No. 1076(K), 66 dated 7th November, 1966. 1. Supply Of Certificates  Zonal/ Regional Offices of National Savings distributes blank Special Savings Certificates/ Defence Savings Certificates to offices of SBP BSC and Scheduled banks.  The field offices/ commercial banks provide names and specimen signatures of two or more officers who are authorized to deal with the RDNS.  The indents are made on quarterly basis on 10th of January, April, July and October each year on a prescribed form (Annexure-I) in quadruplicate which is signed by two authorized officers and verified by the concerned Chief Manager, State Bank of Pakistan (PDOs). The position of stock in hand is shown in the indent(s) with a certificate to the effect that no commission shall be claimed and received on the certificates/ deposits/ encashed/ withdrawn within ninety days of the date of deposit.  In emergency special indent(s) can be placed on depletion of stock to 10% of last year’s sale. A depletion certificate to this effect is required to be furnished with such indents.  The Regional Directorate of National Savings (RDNS) arranges dispatch of certificates in the quantity determined by them. While dispatching certificates, the RDNS prepares an invoice in the lower portion of the indent and sends first two copies along with certificates. Receipt of the certificates is acknowledged on one copy of the indent and it is send back to the RDNS. The third copy is sent to the Chief Manager for record while fourth copy is retained by the RDNS.  On the close of the month, each field office sends an account of stock on prescribed form (Annexure-II) in duplicate to the Director, Currency Management Department, HOK. They forward the second copy to RDNS, duly verified.  Record of receipt of certificates at field offices is reconciled with the record of the RDNS on monthly basis. The RDNS does not supply certificates unless the previous stock is reconciled. Reconciliation process: i. Field offices prepare monthly statement in form (Annexure III) in triplicate containing date-wise detail and summarized account of receipts during the month and submit it to the RDNS duly signed by two authorized officers. The RDNS verifies the position given in the Annexure III with their record and returns one copy under joint signatures to the field office. The audit will verify the said reconciled statement at both the ends with the relevant record. ii. The difference on account of certificates in transit or for other reasons is recorded in a note on the Annexure III of the succeeding month. iii. The reconciliation process is carried out separately for each type of certificates. iv. In case of return of stocks by the receiving office to the supplying office, the receiving office shall be treated as supplying office and vice versa. 32 Business Process Manual Prize Bond Unit 2. Receipt Of Certificates  On receipt of consignments of Certificates from Supplying office (RDNS), Section Incharge by counting the bundles i.e. 10 packets each bundle, 100 pieces in one packet would take the stock under his/her custody.  Entry of receipt is made in the Receipt Register in Form SCR-1 by recording the date, number and date of invoice and the source of receipt etc. Separate folios should be used for each denomination and each category of certificates, thereafter the consignments should be secured in the vault under the lock and key of in-charge, Prize Bonds work, under single custody.  Subsequently as early as possible the consignment should be subjected to cent per cent check with regard to quantity only. The ration of counting, as in case of fresh currency notes, will be 20000 pieces per capita per denomination.  The certificates should be taken into Stock Account and entered in the Stock Register in Form SCR-2. (Separate folios should be set apart for each category of certificates). 3. Supply of certificates to state bank offices and scheduled banks:  Scheduled banks branches after the close of business should immediately provide information regarding the total value of certificates sold to their respective Head/Regional Offices.  The advices of sale of certificates of the branches of scheduled banks should reach SBP BSC through their Head/Regional Offices; within 72 hours of the date of sale.  The Head/Regional offices will advise immediately, the total value of certificates sold authorizing debit of the amount to their account maintained with SBP BSC.  On receipt of the advice: Schedule Bank A/c- Debit Credit 11000-unfunded Debt-Federal Savings Certificates(DSC)  Entry should be made in the register SCR-5.  Scheduled banks will receive a commission of 0.5% on non-institutional investments made through them. In respect of institutional investments, a remuneration of paisa 25 for every transaction will be paid to the banks.  The scheduled banks will submit From DSC-1A on the 7th of every month to the concerned offices of the State Bank. The statement should be verified with daily advices of sales submitted by them and commission or remuneration calculated. 711616- Interest, Misc Payments, Debit NSS-Charges payable to Banks Credit Schedule Bank A/C  Form DSC-1 statement showing the amount of commission paid to scheduled banks should be forwarded by the field offices to SBP BSC (Bank) HOK by the 15 th of every month.  Form DSC-2 statement showing the total sale of certificates effected during the preceding month at our offices and at the offices of scheduled banks under their jurisdiction should be forwarded to HOK by 15th of each month, along with a 33 Business Process Manual Prize Bond Unit statement showing category-wise stock position of Defence Savings Certificates as at the close of the preceding month, in Form DSC-3.  The scheduled bank concerned will pay 1% as commission to their accredited agents if any in case of non institutional investments and 25 paisa per transaction on institutional investment and therefore send a monthly statement of commission paid in form DSC-2(A) to SBP.  The statement should be verified with the statement forwarded by the Schedule Banks in form DSC-1(A) and when found correct; commission so paid should be credited to the account of the schedule bank concerned. 4. SALE OF CERTIFICATES BY OUR OFFICES AT COUNTERS  A Senior Grade.1 (now Senior Asstt.) may be deputed for this work. A working Stock of Certificates may be issued from the vault to the above official for sale at the counter.  Entry of the same will be made in Register SCR-1, Daily Hand Balance Book and SCR-3.  Appropriate arrangements should be furnished for keeping the certificates stock at counter under the above mentioned officer custody. (i) APPLICATION FOR PURCHASE OF CERTIFICATES  Application Form SC-1 for the purchase of Certificates will be received by the official at counter.  The application form should be scrutinized and examined to see if it is complete in all aspects including main details like denomination, number of pieces, name, address, ID card number and CNIC etc. Payment through Cash  The official may assist the customer and after all details required in the application form have been correctly filled in, may issue a token to the purchaser with instructions to deposit the amount at the Cash Counter and note down token number on application form.  The application will then be entered in a transit register and after the entry in the register as also the particulars in the application have been verified by the Section In charge, the application will be forwarded to the cash counter.  The official at Cash Department’s Counter will receive the amount as indicated and affix stamp of the CASH RECEIVED on application with necessary inputting and return the application through a transit book to the Securities Division for issuance of certificates to the applicant.  Due care should be exercised by the Cash Counter to avoid obliteration of the entries on the application while affixing their stamp. The application should not be handed over to the party.  A voucher for the total amount received during the day will be prepared to accord credit to Central Government under the head “O-Unfunded Debt-Savings Certificates”. 34 Business Process Manual Prize Bond Unit Payment Through Cheques  Application if accompanied by a Cheque/ Payment Order/ Demand Draft, should be accepted and the official issues a provisional receipt in the following form:  The cheque should be sent for collection through clearing and the applicant should be asked to receive the certificates after 3 or 4 days, subject to realization of instrument(s).  On receipt of the proceeds, the same should be credited to Government Account in the manner indicated above.  The certificate(s) should be issued to customer on surrender of the provisional receipt.  The date of issue of the certificates will be date of clearance of the cheque. (ii) ISSUANCE OF CERTIFICATE CASH:  The official at the counter will write the serial number and denomination of the certificates to be issued on the reverse of the application form after the fore mentioned process.  The application form should be numbered serially category-wise.  The issuance of certificates should also be entered in Sales Register in Form SCR-4 (separate register should be used for each category of certificates). The official will then prepare the certificates.  The Section In charge of SSC/DSC will verify the entries in the application form, sales register and certificates and sign on the certificates along with an official stamp of the office of issue affixed under the signature of the Section Incharge.  The certificates will be handed over to the purchaser who will acknowledge receipt with his/her signature in the form appended to the application. CLEARING (CHEQUE/ PAYORDER/ DD etc):  In case of application forms with cheques, the Sale register SC-4 would be made and a remark “Paid by Cheque” with red ink.  When the cheque amount is credited to Government account on realization, the certificates will be delivered to the applicant against the surrender of the provisional receipt issued to him/her and his/her acknowledgement in the form of receipt appended to the application (separate sales registers should be used for each category of certificates). (iii) CLOSING FOR THE DAY  At the close of business on each day, the number of certificates issued will be entered in SCR-2 (Stock Register) and SCR-3 (balance stock).  The Section Incharge will take charge of it after verifying the same with counter official.  The hand balance will be secured in the vault under his/her personal custody. 35 Business Process Manual Prize Bond Unit  The application forms category wise should be filed in Cobra Files (Folder) and carefully preserved. T-24 ENTRIES: Sale of Special Savings Certificates: Govt. Deposit Acct C-I Non Food 1000000-Deferred Liabilities 130000 Federal deposits Certificates 2-1304 Special Credit Savings Certificates Cash Debit For Sale of Defence Savings Certficates: Govt Deposit Account Central-I 1201000- Credit Defence Saving Certificates Cash Debit (iv) PURCHASER NOT CLAIMING PROFIT:  If a purchaser expresses his unwillingness to receive any profit on a Certificate, a declaration is to be made with effect on the application for purchase of Certificate.  The words “No profit or Bonus” should be written in red ink on the top of the Certificate alongwith the purchaser’s signature on the application and in the sales register (SCR-4) against the entry of certificates issued to him under authentication of the Section In charge. ( v) NOMINATION:  Nomination may be made by the purchaser(s) of Certificate at the time of purchase in the application form (SC-1), specifying the amount whether whole or in part receivable by the nominee(s) on the death of the purchaser(s). However, a holder of a certificate may, at any time, make a nomination if he/she has not done so earlier or, by notice to the Issuing Authority, vary or cancel his/her previous nomination.  In either case he/she shall send to the Issuing Authority a nomination form (Form-SC- 3) duly completed. 36 Business Process Manual Prize Bond Unit 5. TRANSFER OF CERTIFICATE FROM OFFICE OF ISSUE TO ANOTHER OFFICE  In terms of rule-34 of DSC Rules, 1966, certificates purchased from the SBP BSC (Bank), and the Schedule Banks can be transferred respectively to other offices or branches of the SBP BSC (Bank), the Schedule banks. (Form SC-6).  A purchaser may get the registration of his/her holdings transferred from the original office of issue to another office of issue by applying on the prescribed Form. The form may be handed in without enclosing the certificates to (a) At the office of issue, or (b) At the office to which the transfer of registration is desired.  On acceptance of Transfer, the certificates will be presented at the desired registration office for verification with reference to the application along with the fact of transfer. CASE A- (Issuing Office)  On receipt of the application at the issuing office, the Section Incharge should ensure that:- (a) The certificates to be transferred stand in the name of the applicants. (b) The signature (or signatures in case of joint holders) in the application for transfer agrees with that on record. (c) The particulars of the certificate to be transferred, as well as the serial number of the certificates and date of application for the purchase of certificates.  The Issuing Office Incharge after being satisfied with above details would make a note on the back of the Certificates under his/her full signature with date. (Transferred to the books of the State Bank of Pakistan, SBP BSC (Bank)_____________________on date________).  The above mentioned statement should be written in the remarks column of the application for the purchase of Certificates against the entry of the certificates and in the remarks column of the sales register in Form SCR-4.  Entries of the certificates transferred should be made in the Register of Transfer of Certificates from one issue office to another (outward) in Form SCR-6.  The initials of the Authorized Officer and the intimation of transfer should be signed with date on the reverse of the application and forwarded the office where the registration is transferred and the certificates should be handed over to the applicant. CASE-B (Other Office)  If the application with the certificates for transfer is received at an office where the transfer is desired, the Authorized official after scrutinizing the particulars and serial number of the certificates from the certificates issue a temporary receipt to applicant.  The certificates and application form will be forwarded under a covering letter by insured post to the issuing office for scrutiny as mentioned below.  The application and certificates dispatched should be maintained in the Register of Applications for transfer forwarded to the issuing office in Form SCR-7.  The issuing office on receipt of the application and certificates from the office where the registration of the certificates is to be transferred will scrutinize and make necessary entries in to relevant registers (SCR-4 and SCR-6) as stated above and forward the transfer application and certificates to the office from where they have been received under a covering letter by insured post.  On receipt of intimation of transfer from the issuing office, the office to which the certificates are transferred, will number the application serially; make an entry in the “Register of certificates transferred from one office to another (inward) Form SCR-8 37 Business Process Manual Prize Bond Unit giving full details and particular of the certificates and that serial number. The application will be filed in a separate file according to the serial number of application.” 6. CHANGE OF NAME OF HOLDER OF CERTIFICATE:  If a holder of a certificate changes his/her name in a legal manner and desires that the owner-ship of the certificate be registered in the changed name, the holder should be requested to present an application for such registration signed both in original and changed names.  The application should be accompanied by relevant evidence of the change of name (CNIC, Form-B, newspaper clipping etc.) and the certificate(s) with full address of the applicant.  The application can be presented at any office of the State Bank of Pakistan.  If the application along with certificate(s) is presented other than the office of issue, it should be sent to the office of issue under a registered cover.  On receipt of application at the office of issue whether direct or through another office, incharge SSC/DSC should ensure satisfactory evidence of change of name and after verifying the certificates with reference to application for purchase.  Entry in Sales Register SCR-4 should endorse on the face of the certificate alongwith full signature and date. “Holders name changed to____________________see application No.__________________”  The name of the purchaser as recorded in the application for the purchase or transfer of certificate and in the sales Register SCR-4 should also be corrected and authenticated with full signature of the Authorized Official.  A remark should be recorded in SCR-4 stating the reasons for the change of name.  The amended certificate(s) should be returned to the holder if the application has been presented at the office of issue direct or to the office through which the application has been received, for delivery to the holder. 7. TRANSFER OF CERTIFICATES FROM ONE HOLDER TO ANOTHER  Holder of certificate(s), if he/she so desires, or on the order of court, may transfer holdings to another person on applying to the incharge of the office of issue.  Certificate(s) can be transferred: i. Single holder to another person/ heir ii. Single holder to joint-holders class A-B iii. Joint-holders class-A to joint-holders class-B iv. Joint Holder(s) to Single holder.  Certificates held on behalf of a minor are non transferable other than the minor concerned, or to his/her heir(s).  Certificates purchased under DSC rule 4(11) Provident Fund scheme are non- transferable except the written instructions of the authority controlling the provident fund.  Application for transfer in the prescribed form SC-4 should be addressed to the office of the State Bank of Pakistan where the certificates are registered.  Particulars as under will be given in the application:- i. Name and address of the applicant 38 Business Process Manual Prize Bond Unit ii. Face value of the certificates to be transferred, their serial No. and office of Issue. iii. Name and address of the person to whom the transfer is proposed. iv. Relationship(if any) with the person to whom the transfer is proposed, and v. The full circumstances which necessitate transfer.  Application for transfer of certificates in joint names (whether jointly and severally) shall be signed by both the joint-holders, when both of them are alive.  Transfer of certificates before the expiry of the period of non-encashability (the period before which certificates cannot be en-cashed) as mentioned in rule 36 of DSC Rules is allowed only in exceptional circumstances.  In such cases application should be accompanied by a certificate signed by a District Magistrate or Commanding officer where the applicant belongs to Armed Forces, the unit to which the applicant is attached to the following effect:- “Having made the necessary enquiries, I certify that to best of my belief the facts stated above are substantially correct”.  Transfer of certificates in the above cases shall be allowed on the written authority of the Chief Manager of the State Bank’s Office where the certificates are registered.  His/her decision whether to sanction or with-hold sanction for transfer shall be final.  Transfer of certificates under rule 52 of DSC Rules i.e., deceased holder to his/her nominees, or under court orders should normally be allowed by the incharge of the Office where the certificate is registered on receipt of application in the prescribed form SC-4.  These transfers will be free of charge.  On receipt of the application for transfer, incharge SSC/DSC will overview full particulars as required therein and endorse the application.  The signature of the applicant should be verified with the original application for the purchase of the certificates.  He/she will obtain the orders of the Chief Manager for transfer of the certificate/s on the transfer application after satisfying on details.  After orders of the Chief Manager have been obtained, the original certificate must be duly discharged and a new certificate in the name of the transferee bearing the same date of issue as the original certificate shall be issued.  The serial number, date of original issue and denomination of fresh certificate(s) issued in lieu of certificate(s) transferred should be entered in SC-4 over the signature of incharge of SSC/ DSC on the transfer Application and a note “Transferred to__________(name