KARACHI: The board of directors of Deposit Protection Corporation (DPC) on Tuesday doubled the guarantee amount for all eligible depositors of its member banks from Rs500,000 to Rs1 million with immediate effect.
“This enhanced guarantee amount now provides full protection to around 96 per cent of eligible depositors. The main objective of the deposit protection scheme is to safeguard the depositors’ interest and further enhance their confidence in the banking sector,” said a statement issued by the DPC. This will also support financial stability in the country, it added.
The deposit protection facility applies to all eligible depositors without any fee. The guaranteed amount or protected deposit becomes payable to eligible depositors only if the SBP declares a bank as a failed entity and is not payable under any other circumstances.
Published in Dawn, October 2nd, 2024
