Islamabad: The Deposit Protection Corporation (DPC) has officially raised the guarantee amount for eligible depositors in its member banks from PKR 500,000 to PKR 1,000,000, as reported on October 2.
As per details, the decision was made by the Corporation’s Board of Directors and will take effect on October 1, 2024. According to a statement from the State Bank of Pakistan (SBP), this enhanced guarantee will provide full protection for approximately 96% of eligible depositors. The primary aim of the deposit protection scheme is to safeguard depositor interests and boost their confidence in the banking sector.
The SBP highlighted that this initiative will also contribute to financial stability across the country. Notably, the deposit protection scheme applies to all eligible depositors without requiring any fees from them. The protected deposit will only be disbursed to eligible depositors if the State Bank declares a bank as failed, and it is not payable under any other circumstances.
