The State Bank of Pakistan’s subsidiary, the Deposit Protection Corporation (DPC), has increased the deposit insurance limit to Rs1 million per depositor per bank, doubling the previous coverage level and expanding protection for millions of bank customers.

The revised limit was announced in the DPC’s Annual Report for FY2024–25, released on June 10. This marks the second upward revision in deposit protection since the corporation was established under the Deposit Protection Corporation Act, 2016.

As of June 30, 2025, Pakistan’s banking sector had 91.78 million depositors. The report states that 90.83 million of them fall under the eligibility criteria of the deposit protection scheme, meaning their deposits are now insured up to Rs1 million per bank.

The DPC also reported that its Deposit Protection Fund had crossed Rs200 billion by the end of the fiscal year, strengthening its capacity to reimburse depositors in case of a bank failure or support resolution actions directed by the State Bank of Pakistan.

Officials said the higher coverage limit is intended to improve depositor confidence and reinforce stability in the banking system as financial inclusion expands across the country.