SBP makes new same-day settlement rules for Premium Prize Bond sales
New rules for Premium Prize Bond sales
The State Bank of Pakistan (SBP) has introduced new instructions for banks handling Premium Prize Bond transactions.
Under the updated system, authorised commercial banks must settle all Premium Prize Bond sales with SBP Banking Services Corporation (SBP BSC) Karachi on the same day.
The instructions were issued through CMD Circular No. 22 of 2026 and sent to the presidents and chief executives of authorised banks.
The new SBP new rules are aimed at making the reporting and settlement of transactions faster and more accurate.
Same-day settlement becomes mandatory
Under the SBP Premium Prize Bond same-day settlement system, banks must report their sales through the Direct Access Portal (DAP) within the prescribed timelines.
SBP BSC Karachi will debit the account of the concerned bank according to the amount of sales reported during the day.
The new Premium Prize Bond procedure means banks will need to ensure that sales are reported and settled without unnecessary delays.
The move is expected to improve the handling of Premium Prize Bond sales and reduce delays in the settlement process.
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Banks could face charges for delays
Banks that fail to complete the required settlement on the same day could face financial charges.
According to the SBP new rules, delayed settlements will attract “use of funds” charges for the period of the delay.
The charges will be calculated according to the SBP Overnight Reverse Repo (Ceiling) rate applicable on each day during the delay.
SBP BSC Karachi will calculate and recover these charges by debiting the account of the relevant bank.
The amount will then be credited to Central (Non-Food) Account No. 1 under Account Head C02247.
Banks responsible for incorrect payments
The SBP Premium Prize Bond instructions also place greater responsibility on banks for reporting errors.
If profit or prize money is wrongly paid because of non-reporting, delayed reporting or incorrect reporting of sales, encashment or transfer transactions, the concerned bank will be held responsible.
The bank will have to pay the gross amount that was wrongly issued, with income tax adjustments made where possible.
This part of the SBP new rules could encourage banks to check their transaction reports more carefully.
Why the change matters
The central bank said it reviewed the existing system before introducing the updated instructions.
The SBP Premium Prize Bond same-day settlement requirement could help reduce reporting delays and improve transaction accuracy.
For banks, the latest instructions mean that timely reporting will become more important.
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The Premium Prize Bond sales process will now require closer monitoring to avoid additional charges or incorrect payments.
The SBP Premium Prize Bond same-day settlement requirement may also provide a more organised process for handling transactions.
What happens next?
All authorised banks will have to follow the updated procedure.
The Premium Prize Bond instructions also state that all other existing directions on the subject will remain unchanged.
Banks will therefore need to focus on both timely settlement and accurate reporting.
