The government plans digital prize bonds for secure and paperless transactions.
The government is getting ready to introduce digital prize bonds, a new initiative aimed at providing a secure, paperless investment option for citizens.
The bonds will be transacted through a mobile application, with winnings directly credited to linked bank accounts or Central Directorate of National Savings (CDNS) accounts at the time of purchase.
The prize money will be taxable but exempt from Zakat.
The move is part of a broader effort to enhance transparency, improve economic documentation, and prevent fraud.
By shifting to a digital format, authorities aim to reduce risks associated with theft, loss, and damage while streamlining transactions.
The government will initially offer digital prize bonds in denominations of Rs500, Rs1,000, Rs5,000, and Rs10,000.
Additional denominations may be introduced later based on demand.
Officials believe the digital bonds will eliminate the costs of printing and logistics while providing a more efficient and accessible investment option for the public.
Under the new system, bonds will be registered under the buyer’s name, minimizing the risk of misuse or fraud.
Investors will be able to buy, sell, and redeem their digital prize bonds seamlessly through the National Savings mobile app and other approved CDNS channels.
Prize money will be credited directly to the investor’s linked account, and quarterly draws will be held, with the government announcing the schedule at the beginning of each calendar year.
Investors will also have the option to nominate beneficiaries, ensuring that in the event of their passing, the bond value and prize winnings can be smoothly transferred to their legal heirs.
If the total amount is Rs 500,000 or less, it will be paid to the nominated beneficiary without the need for a succession certificate.
