Depositors’ protection money enhanced to Rs500,000 State Bank of Pakistan

Depositors’ protection money enhanced to Rs500,000

KARACHI: The Deposit Protection Corporation (DPC) has increased the guarantee amount for all eligible depositors of banks from Rs250,000 to Rs500,000.

The State Bank of Pakistan (SBP) on Friday said that the decision had been made by the Board members of the corporation in their meeting held on September 06, 2021.

This enhanced guarantee amount now provides full protection up to 95 per cent of the eligible depositors.

The main objective of the deposit protection scheme is to safeguard depositors’ interests and further enhance their trust in the country’s banking sector.

The deposit protection facility is applicable to all eligible depositors and does not require any further subscription or registration of depositors.

The guarantee amount or protected deposit becomes payable to eligible depositors only if the State Bank of Pakistan declares a bank as a failed bank and is not payable under any other circumstances.

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