KARACHI: The Deposit Protection Corporation (DPC), on Tuesday, increased the guarantee amount for all eligible depositors of its member banks from Rs. 500,000 to Rs.1,000,000 with effect from October 01, 2024.
The Corporation, a subsidiary of State Bank of Pakistan, taken the decision to enhance guarantee amount that now provides full protection to around 96 % of the eligible depositors, said a statement issued here.
Deposit protection facility is applicable to all the eligible depositors and does not require any fee from the depositors. The main objective of the deposit protection scheme is to safeguard the depositors’ interest and further enhance their confidence in the banking sector as well as supporting financial stability in the country, it added.
Under the provisions of section 7(1) of DPC Act 2016, the Corporation shall guarantee full payment of funds held in depositor’s account, up to an amount prescribed by the Corporation from time to time.
“The guarantee amount or protected deposit becomes payable to eligible depositors only if State Bank of Pakistan declares a bank as a failed bank and is not payable under any other circumstances,” the SBP maintained.
Referring to instructions regarding installation and update of “Single Depositor View” (SDV) database, and the enhancement in the amount of protected deposit, the DPC also advised the banks to use new guarantee amount in their SDV database for reporting.
