The State Bank of Pakistan (SBP) announced that the Deposit Protection Corporation (DPC) has raised the guarantee amount for eligible depositors of its member banks from Rs. 500,000 to Rs. 1,000,000. This change, effective from October 1, 2024, was approved by the Corporation’s Board of Directors.
The increased guarantee amount now fully protects approximately 96 percent of eligible depositors, aiming to safeguard their interests and boost confidence in the banking sector. This move is also expected to contribute to financial stability in the country, according to the central bank.
The SBP clarified that the deposit protection facility applies to all eligible depositors without requiring any fees from them. The guaranteed amount becomes payable only if the State Bank of Pakistan declares a bank as failed; it is not applicable under any other circumstances.
