Depositors’ protection guarantee amount doubled: SBP

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

The decision was made by the board members of the corporation in their meeting held on September 6, 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’ interest and further enhance their trust in the country’s banking sector.

Deposit protection facility is applicable to all the 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 (SBP) declares a bank as a failed bank and is not payable under any other circumstances.