The Deposit Protection Corporation (DPC) has announced an increase in the deposit guarantee for all eligible depositors, doubling the amount from Rs500,000 to Rs1,000,000, effective October 1, 2024. This decision, made by the DPC’s Board of Directors, was revealed on Tuesday.

According to a statement from the State Bank of Pakistan (SBP), the new guarantee covers approximately 96% of eligible depositors, offering greater financial security.

“The primary goal of the deposit protection scheme is to safeguard depositors’ interests and strengthen their confidence in the banking system,” the SBP said. The enhanced protection is also expected to contribute to the stability of the country’s financial sector.

The deposit protection applies automatically to all eligible depositors at member banks, and there is no additional fee for this service.

However, the guaranteed amount will only be payable if the SBP declares a bank as failed, and the protection does not cover any other circumstances.