Govt to launch digital prize bonds, check how to buy, redeem digitally

ISLAMABAD: The Finance Division has directed the Central Directorate of National Savings (CDNS) to launch digital prize bonds, aiming to promote a paperless system and reduce printing and logistics costs.

By removing the need to store physical prize bonds in safe custody, this would save on printing and stationery as well create customer convenience.

The digital prize bonds will be registered in the buyer’s name, decreasing the risks of theft, damage, or loss. Initial offerings will comprise Rs10,000, Rs5,000, Rs1,000, and Rs500 amounts.

Using a linked bank account or CDNS savings account, qualified people can buy digital prize bonds through the National Savings Mobile App or other CDNS authorized outlets.

Winning amount will be added to the same linked bank account or savings account used for buying, so the redemption process will be also digital.

Draws would happen quarterly or according to the Finance Division schedule.

Additionally, in case the buyer dies, he can nominate someone at the time of purchase, with the possibility to afterwards change or cancel the appointment.

After the buyer’s death, the principal amount and any prize money will be payable to their legal heirs or nominee, depending on the total amount.