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Contents
Acknowledgement ---------------------------------------------------------------------------------------- 01
References --------------------------------------------------------------------------------------------------- 30
Acknowledgement
All thanks to Almighty ALLAH who has empowered my poured knowledge that made us
able to complete this report and made it possible. I would like to thanks management of
SBP BSC (Bank) Sukkur to appoint me as internee and giving me the opportunity to get
the practical exposure of banking sector. This report provides all the knowledge and
experience that I got during my internship in SBP.
State Bank of Pakistan Banking Service Corporation (Bank) Sukkur Field Office
Vision
“To develop SBP BSC (Bank) into a strong and dynamic institution, equipped with
efficient and professional human resources base having necessary technology, fully
capable of providing quality services to stakeholders and complementing State Bank of
Pakistan in achieving its objectives”.
Mission
“To maintain an efficient currency management system, provide effective banking
services responsive to changing environment so as to command trust and respect of our
stakeholders”.
SBP Banking Services Corporation, Sukkur Office enjoys a long history of central
banking since its inauguration in 1994. The office gets further importance and increased
responsibilities in terms of serving to the government departments. As a Field Office of
BSC, it is committed towards providing customer oriented banking services to
government, financial institutions and the public, management of currency and National
Savings Schemes and canalizing efficient operations of the payment system. The main
focus of the bank is aimed at bridging the gap between the central bank and it
stakeholders so that policies are made that strengthen the financial system and provide
and enabling framework for the financial industry that fosters economic growth.
meeting these goals. With the support of Bank management and the Audit Committee,
the Internal Audit Department provides the highest quality of auditing services, thus
enhancing control at the Bank.
Type of Account
1- Drawing Account
When an Officer of a Government Department is authorized to draw funds from Bank
without limit such an account is called Drawing Account.
2- Assignment Account.
In case of certain Department, Accountant General Authorizes the bank is to open
Ledger Deposit Accounts in favor of the head of these Departments and Army unit
are called Assignment Account.
b) Receipts Unit
This unit is responsible for keeping accounts of money paid into SBP BSC (Bank) for
credit to Government Account (Central and Provincial). All money that are tendered at
the bank for credit to Government Account should be accompanied by Treasury Challan
in the form of prescribed by the Government concerned are permitted to be deposited by
the member of the Public direct into the Bank for credit to Government Accounts Such
as: Income Tax and Sales Tax Deposits. All Challan require to be counter signed by
Treasury Officers or Head of the Government Department on whose account the amount
paid.
c) Clearing House
SBP BSC (Bank) among other things also acts as a Clearing House for Commercial
Banks who have to maintain Current Accounts with it. The SBP BSC (Bank) Offices
supervise the working of the Local Clearing House as all the important centers where the
Bank has established its offices through National Institutional Facilitation Technologies.
10-PrizeBond Unit
Public finance is a field of economics concerned with paying for collective or
Governmental activities, and with the administration and design of those activities.
Governments usually borrow by issuing securities such as Government Bonds and Bills.
Internal debt owed by a Government as part of the country's national debt. It is a form of
fiat creation of money, in which the Government obtains cash not by printing it, but by
borrowing it. The money created is in the form of Treasury Securities Bonds or Securities
borrowed from the Central Banks. These may be traded but will only rarely be spent on
goods and services. Prize Bonds are bearer type of security and major instrument of
internal source of financing source; through which Government finance their expenses by
issuing Bonds. Prize Bonds is in under of Ministry of Finance and National Directorate.
Funds raised through Prize Bonds are used to offset Government borrowing and are
refundable to the Bond holder (owner), on the demand. Prize Bonds carry no interest, but
have Prize Money through draw.
Governments usually borrow by issuing securities such as Government Bonds and Bills.
Internal debt owed by a Government as part of the country's national debt. It is a form of
fiat creation of money, in which the Government obtains cash not by printing it, but by
borrowing it. The money created is in the form of Treasury Securities Bonds or Securities
borrowed from the Central Banks. These may be traded but will only rarely be spent on
goods and services. In this way, the expected increase in inflation due to the increase in
national wealth is lower than if the Government had simply printed the money and
increased the more liquid forms of wealth.
External debt is part of the total debt in a country that is owed to creditors outside the
country. i.e.: international financial institutions such as the IMF and World Bank.
Prize Bonds are bearer type of security and major instrument of internal source of
financing source through Government finance their expenses by issuing Bonds. Prize
Bonds is in under of Ministry of Finance and National Directorate. Funds raised through
Prize Bonds are used to offset Government borrowing and are refundable to the Bond
holder (owner), on the demand. Prize Bonds carry no interest, but have Prize through
draw.
National Savings Certificates are other form of internal source of financing, which carry
interest after every six.
The history of National Savings Organization dates back to the year 1873 when the
Government Savings Bank Act, 1873 was promulgated. During the First World War, the
British Government introduced several scheme for collection of funds to meet the
expenditure. The need to setup a separate agency of National Savings Bureau was
established in 1943-44 as an attached department of the Ministry of Finance of the
undivided Government of India.
Then I turn into National Savings Certificates which are related with my topic i.e.:
Special Savings Certificates (SSC) and Defence Savings Certificates (DSC). What is their
maturity, and how it earns simple and compound interest on its face value throughout its
maturity.
Introduction
The sale of Prize Bonds of Rs.10/- denomination under the scheme of National Prize
Bonds was commenced by the Bank as an agent to the Government of Pakistan from 1 st
October 1960 a detailed procedure for the management of National Prize Bonds by the
Offices of the Bank was drawn up and circulated to them under “Central Directorates”
circular letter No. PB/88/ (PB-1)-60 dated the 12th September 1960 till October 1963. The
said procedure was followed by our offices.
Prize Bonds of Rs.5/- and Rs.11/- denomination were introduced from 24th June 1964. As
the popularity of the Prize Bonds on its ready convertibility into cash, it was decided to
afford the facility of free encashment of the Prize Bonds at all the offices of the SBP,
Commercial Banks, and Post Offices all over Pakistan irrespective of the place of their
issue. Therefore keeping in view the interest of Public, Government and the Bank, it was
decided that National Prize Bonds presented at the counters of above institutions should
be engaged in the same manner in which currency notes were exchanged. Further, the
Prize Bonds so en-cashed should be resold to the public so that who wanted to buy old
Bonds in series which had already been sold out might get an opportunity of acquiring
them and the cost of printing of Prize Bonds to the Government reduced. Besides, Prize
Bonds of Rs.50/-, Rs.10/-, Rs.500/- and Rs.1000/- have also been introduced with effect
from 1st July 1981.
Outline of Scheme
This scheme was effective up-to 1999 are called Old Denomination Prize Bonds
The Prize Bonds will call National Prize Bonds these will be issued as a Central
Government loan and will be treated as Government bearer Bonds. They will be in the
denomination of Rs.5/-, Rs.10/-, and Rs.50/- these are called Lower Denomination
Bonds. Rs.100/-, Rs.500/-, and Rs.1000/-; these are called Large Denomination Bonds.
Both denomination will be issued in series, distinguishing number from which will
preceded by a single and thereafter double etc. alphabet viz: A , B , C e.t.c ., AA, AB,
AC, BA, BB etc. followed by six digits. Each series of Rs.10/- Denomination consist of
Five Hundred Thousand Pieces, Rs.5/- Denomination Prize Bonds series consist of One
Million Pieces of Bonds. Each series of Rs.50/-, Rs.100/-, Rs.500/-, and Rs.1000/-
Denomination consist of One Hundred Pieces. The Bonds will not bear interest but lots
will be drawn in every Two months for Denomination of Rs. 5/- , Rs. 10/- and Rs. 11/-
lots will be drawn on Denomination of Rs.50/-, Rs.100/-, Rs.500/-, and Rs.1000/- on
quarterly basis.
This scheme was effective from 1999 are called New Denomination Prize Bonds
This Scheme consists of Six Denominations, Three are in Lower Denomination and
Three are in Large Denomination: Lower denomination consists of Rs.200/-, Rs.750/-,
and Rs.1500/- lots of these will be drawn once in every three months the draw occur on
15th of the month in which draw has to occur. Large denomination consists of Rs.7500/-,
Rs.15000/- and Rs.40, 000/- lots of these will be drawn once in every three months the
draw occur on 1st of the month in which draw has to occur. If any of the aforesaid dates
happened to be a public holiday, the draw will be held on next working day. These dates
are duly announced by Chief Director, National Savings, Government of Pakistan,
Ministry of Finance in Government Gazette and newspapers. The Prize Bonds draws will
be conducted in accordance with the procedure for the national Prize Bonds. As the
Bonds are of bearer type the holders there-of will be deemed as their owners and
ownership will passes from person to person by simple delivery. Sale and encashment of
above mentioned Prize Bonds will continue till such time as the central Government
notifies closure of the sale in the Gazette of Pakistan.
After detailed counting and examination, Prize Bonds Section dispatches the Prize Bonds
to Public Debt Office Karachi and Lahore according to their allocation for distribution
among the offices under their jurisdiction.
At all the Field Offices of the Stated Banks of Pakistan sale of Prize Bonds will be
conducted over the counters of the Cash Department. In the morning the Bonds will be
taken out from the vault as is the case Bank notes issued to the counter Tellers. The
counter Teller will enter particulars of the Bonds, viz: Series, Serial numbers and total
pieces of the Fresh Bonds and Series and total pieces in respect of Re-issuable Bonds in
the receipt column of Teller’s Sales Register prescribed for the purpose (form PB-7). The
receiving Teller will verify the Fresh and Re-issuable Bonds by counting. Particulars of
sold Bonds either Fresh or Re-issuable duly entered in columns provided in the aforesaid
register.
The statement of sales should be compiled in Form PB-8. This statement of sales will be
prepared in two parts; first part will show the detailed particulars of Fresh Bonds sold viz;
series, serial no, total pieces, and value and second part will show the series wise total
pieces and value of the Re-issuable Prize Bond sold, this statement must be checked and
signed by Deputy/Assistant treasurer and accountant (Cash)/ treasurer and delivered to
the Assistant Chief Manager (ACM) in-charge, Prize Bonds section through pass book.
As regards sales to Post Offices and Commercial Banks an arrangement would ordinary
be made by the Prize Bond section in terms Post Offices and Banks will give one day’s
prior notice of purchase to accounts Officer-In-Charge Prize Bond section. On receipts of
this notice ACM will advice the cash department who will keep the Bonds ready for
delivery to the Banks and Post Offices through special counters. Ordinary Commercial
Banks and Post Offices will make payments for the Bonds by means of checks drawn on
their accounts which the SBP, with the covering letter.
The encashment of Bonds will be done at the counters of the cash department. The
Teller-in-Charge of the counter will receive the Bonds tendered and examine them to
ensure that:
The Bonds are genuine;
The Bonds bear the name of place and date of their issue;
The series and numbers are intact and
The Bonds are free from mutilation and erasure.
If the Teller is satisfied about the genuineness of the Bonds and they are free from defects
he will enter En-cashed Bonds in his Register (Form PB-7A)
Like as: On 2nd Jan 2010 their were the draw of Rs. 15000/- denomination, then up to 31st
Jan 2010 sale Rs.15000/- Denomination Re-issue able Bonds continue, then shut period
of two month i.e. :(selling of re-issuable Bonds stop of Rs. 15000/- denomination Prize
Bonds for two: Feb and Mar), then selling of Rs. 15000/- Denomination Prize Bonds
again start after, for month after the draw which was held on the 1st April 2010 then again
shut period of two month. This process is continuing for all the denomination throughout
the year. As both Re-issuable and Defaced Prize Bonds in the custody of the State Bank
of Pakistan will be eligible to participate in the Prize Draw, it is quite likely that some of
these Bonds may win prizes. The Prize Money won by those Bonds will be credit to
Government.
Prize Money above Rs. 18,500/-, receiving claim Offices of the State Bank of Pakistan
confirm through telex in form PB-59 regarding the outstanding position of case in PB-18.
On receipt of confirmation in form PB-60 from concern Public Debt Office, the claim
will be settled. Prize Money above Rs. 18,500/- is paid to party through pay orders.
Audits are performed to ascertain the validity and reliability of information; also to
provide an assessment of a system's internal control. All Prize Money paid after the
auditing of the Bonds, some audits are performs by Assistant Officer and some audits are
done through the Internal Monitoring Unit. Audit performs by AO named as checking
and rechecking of Prize Winning Bonds. Prize Money claims of Rs. 100,000/- and above
are sent to PSPC for verification of their genuineness.
Date and place of Draw for all denomination of Bonds from Rs. 200/- to Rs. 40000/-
for 2010
These certificates can be purchased by a single adult, a minor, two adults in their joint
names with the options of payable to the holders jointly (Joint/A ) or payable to either
(Joint/B). An adult can also purchase these certificates on behalf of a single minor, two
minors jointly or himself (herself) and a minor jointly. These certificates can be
purchased by filling in a prescribed form (SC/I), obtainable from any National Savings
Centre, Pakistan Post Office, SBP BSC (Bank). A copy of the Computerized National
Identity Card (CNIC) or in case of foreign national, a copy of the Passport may be
attached with the application form (SC/I). There is no maximum limit of investment in
this scheme. The Certificates shall, notwithstanding anything to the contrary appearing on
the obverse or reverse of the certificates, be en-cash able at par at any time after the date
of purchase. These certificates can be purchased by depositing cash at the issuing Offices
or by presenting a cheque. The certificates shall immediately be issued on receipts of
cash. However, in case of deposit through cheque the certificates shall be issued from the
date of realization of the cheque after receipt of the clearance advice.
Interest rates changed time to time to reduce the impact of Inflation on public. The
Finance Division, Govt. of Pakistan, according to the Notification No.F.20 (2) GS-I/200/-
7-1289 dated 24.06.2008 has reviewed the rate of return on Defence Savings Certificates.
The return on Defence Saving Certificates has been fixed as given in table below, for the
certificates issued with effect from 24.06.200/-8. The Defence Savings Certificates
purchased prior to the above said Notification shall earned profit at the rate prevailing on
the date of purchase. The year wise payable amount on initial investment of Rs.100/- is
given as under:
YEARS
1 2 3 4 5 6 7 8 9 10
RUPEES 108 118 129 142 158 177 201 230 265 315
i) Zakat shall be deducted only once at the time of actual encashment on the value fallen
due on the relevant valuation date i.e. (1st Ramadan) and not on the continuous
reinvestment after the maturity. A Zakat collection receipt duly signed by the two officers
is issued in token of the deduction of the amount.
ii) With Holding Tax: As per directions of the Federal Government, the tax on profit
from investment made on or after the 1st July,200/-2, shall be deducted at source at the
rate of Ten Percent (10%) of such profit if such deposit exceeds Hundred and fifty
Thousand Rupees (150,00/-0).
Transfer of Certificates:
From one Centre to another
Certificates are transferable from one city to another by applying on the prescribed form
(SC/6) obtainable from any NSC/ SBP BSC (BANK) office and also available at the
website of National Savings (http://www.savings.gov.pk) under the option of "Forms".
The application duly filled in along with two copies of NIC may be presented at the
office of issue or at the office where the transfer is desired. However, the certificates
purchased from scheduled banks, State Bank of Pakistan, SBP BSC (Bank), PPO and
NSC can be transferred to and from the respective branches of the issuing office /
agencies only.
SSCs Purchased Jul 01 200/-9 -till notification (issue-17)(Simple Interest Schedule of SSC)
11.6% Per year for 1st five profits and @12 Per year for the last Profit
Period of six month 500/- 1,000/- 5,000/- 10,000/- 50,000/- 100,000/- 500,000/- 1,000,000/-
1 29/- 58/- 290/- 580/- 2,900/- 5,800/- 29,000/- 58,000/-
2 29/- 58/- 290/- 580/- 2,900/- 5,800/- 29,000/- 58,000/-
3 29/- 58/- 290/- 580/- 2,900/- 5,800/- 29,000/- 58,000/-
4 29/- 58/- 290/- 580/- 2,900/- 5,800/- 29,000/- 58,000/-
5 29/- 58/- 290/- 580/- 2,900/- 5,800/- 29,000/- 58,000/-
6 30/- 60/- 300/- 600/- 3,000/- 6,000/- 30,000/- 60,000/-
Reference:
1- Mr. Sajid Ali Shah Chief Manager SBP BSC (Bank) Sukkur Field Office
2- Mr. Bashir Ahmed Jumani OG-2 SBP BSC (Bank) Sukkur Field Office
3- Mr. Mushtaq Ahmed Bhayo SBP BSC (Bank) Sukkur Field Office
4- Mr. Altaf Ahmed Memon SBP BSC (Bank) Sukkur Field Office
5- Mr. Abdul Razzaq Soomro OG-2 SBP BSC (Bank) Sukkur Field Office
6- Mr. Dilawar Hussain ACM SBP BSC (Bank) Sukkur Field Office
7- Internet
www.google.com
www.sbp.org.pk
www.wikipedia.com