The State Bank of Pakistan (SBP) announced on Friday that the Deposit Protection Corporation (DPC) has revised its guaranteed amount for all eligible depositors of banks up to Rs500,000.
According to SBP, “This enhanced guarantee amount now provides full protection up to 95pc of the eligible depositors. The main objective of the deposit protection scheme is to safeguard depositors’ interest and further enhance their trust banking sector.”
Under sub-section (2) of section 37 of the State Bank of Pakistan Act 1956, the membership of the Deposit Protection Corporation is compulsory for all banks scheduled.
The statement issued by SBP highlighted, “Deposit protection facility applies to all the eligible depositors and does not require any further subscription or registration of depositors.”
It further added, “The guarantee amount or protected deposit becomes payable to eligible depositors only if State Bank declares a bank as a failed bank and is not payable under any other circumstances: