WEBDESK: The government has decided to launch digital prize bonds to make transactions in National Savings Schemes safer and more cost-effective. These bonds will be bought, sold, and redeemed through a mobile app, eliminating the need for physical paperwork. The initiative aims to modernize the savings system while increasing transparency and accountability.
According to the Finance Division, digital prize bonds will initially be available in order of Rs. 500, Rs. 1,000, Rs. 5,000, and Rs. 10,000. Buyers can purchase them through the National Savings mobile app or other approved platforms. Payments will be made using a linked bank account or a Central Directorate of National Savings (CDNS) savings account.
Since digital bonds will be registered under the buyer’s name, the risk of fraud is minimised. The move will also make buying, selling, and prize redemption easier and efficient. While the prize money will be subject to tax, it will be exempt from Zakat.
The Finance Division has instructed the CDNS to introduce digital prize bonds to replace discontinued bearer bonds. This shift will also reduce costs related to printing and logistics.
Draws for digital prize bonds will be held quarterly, as per notifications from the Finance Division. CDNS will announce the draw schedule at the beginning of each year. In case of the bondholder’s passing, the original bond amount and any prize money will be transferred to their legal heirs based on a succession certificate.
The government believes that digital prize bonds will make the savings process more efficient and accessible for citizens. With the ability to buy, sell, and redeem them online, people can now invest more conveniently and securely.
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