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

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