Karachi: In a significant move to boost depositor confidence, the Deposit Protection Corporation (DPC) has announced an increase in the guarantee amount for bank depositors from Rs. 500,000 to Rs. 1,000,000, effective from October 1, 2024. This decision, made by the DPC’s Board of Directors, aims to enhance financial stability and safeguard depositor interests across Pakistan.
According to State Bank of Pakistan, the enhanced guarantee now extends full protection to approximately 96% of all eligible depositors within the member banks of the DPC. This adjustment reflects the Corporation’s commitment to reinforcing the public’s trust in the banking sector amidst evolving economic conditions.
The deposit protection scheme is designed to ensure that depositors’ funds are secure, providing them with a safety net in the event of a banking failure. Importantly, this guarantee is applicable to all eligible depositors without requiring any additional fees. It is activated only if the State Bank of Pakistan declares a bank as failed, and is not applicable under any other circumstances.
Further details and guidelines about the updated guarantee and its implications for bank customers can be found in a circular letter available on the DPC’s ffvwebsite.