Govt Set to Launch Digital Prize Bonds
- Sara Habib
- March 12, 2025
- 8:40 am
- 183
- Current Affairs
The government is set to introduce digital prize bonds, offering a modern and paperless investment alternative. These bonds will be managed through a mobile application, ensuring ease and security.
How Digital Prize Bonds Work
These bonds will be credited directly to linked bank accounts or Central Directorate of National Savings (CDNS) accounts. This eliminates the need for physical documents, reducing the risks of loss or theft.
Benefits of Digital Prize Bonds
No physical certificates, ensuring safety
Lower risk of fraud and misplacement
Direct credit of prize money to bank accounts
Simplified purchase and redemption process
Reduced printing and logistical costs
Taxation and Zakat Exemption
Prize money from digital bonds will be subject to taxation. However, Zakat deductions will not apply, making them a more flexible option for investors.
Denominations and Availability
The government plans to issue digital prize bonds in denominations of:
Rs. 500
Rs. 1,000
Rs. 5,000
Rs. 10,000
Additional denominations may be introduced based on demand. These bonds will be available for purchase through the National Savings mobile app and other authorized CDNS platforms.
Easy Prize Redemption
Investors will receive their prize money directly in their linked accounts. Quarterly draws will be held, and the schedule will be announced at the start of each year.
Nomination and Succession Process
Buyers can nominate beneficiaries while purchasing the bonds. Nominations can be updated or canceled as needed. If the investor passes away, the bond’s value and prize money will be transferred to legal heirs upon submission of a succession certificate. If the amount is up to Rs. 500,000, it will be paid to the nominated beneficiary.
Conclusion
Digital prize bonds bring security, transparency, and efficiency to the investment process. With easy access through mobile platforms, this initiative is expected to enhance financial inclusion in Pakistan.
