Guarantee amount at bank deposits enhanced to PKR 1 million
The Deposit Protection Corporation
(DPC) announced on Tuesday that it has increased the guarantee amount for all
eligible depositors at its member banks from PKR 500,000 to PKR 1,000,000,
effective October 1, 2024.
As a subsidiary of the State Bank of
Pakistan, the DPC's decision to enhance the guarantee amount aims to provide
full protection to approximately 96% of eligible depositors, according to a
statement released by the organization.
Read More Deposit
Protection Corporation safeguarding 98% of bank deposits
The deposit protection facility
applies to all eligible depositors without requiring any fees. The primary goal
of the scheme is to protect depositors' interests, bolster their confidence in
the banking sector, and support financial stability in the country.
Under Section 7(1) of the DPC Act
2016, the Corporation guarantees the full payment of funds held in a
depositor's account, up to the amount specified by the Corporation at any given
time.
It is important to note that the
guaranteed amount becomes payable to eligible depositors only if the State Bank
of Pakistan declares a bank as a failed institution; it is not payable under
any other circumstances.
Read More State
Bank warns about limit of deposit protection at banks
In light of the updated guarantee
amount, the DPC has instructed banks to incorporate this new figure into their
“Single Depositor View” (SDV) database for accurate reporting and updates.
Source: APP