An increase in the guarantee sum for qualified depositors of member banks was announced by the Deposit Protection Corporation (DPC) on Tuesday. The increase was from Rs500,000 to Rs1 million.
All of the eligible depositors across the country would be afforded complete protection as a result of this improvement, which was approved by the board of directors of the DPC.
The decision was made with the intention of protecting the interests of depositors and fostering financial stability inside the country, according to the State Bank of Pakistan (SBP).
A whopping 77.7 million accounts held by member banks are now protected by the DPC as a result of this revised guarantee. This contributes to the protection of about 96% of the total account holders in the banking sector, which equates to approximately 80 million personal accounts.
A number of experts considered that the DPC’s guarantee was insufficient in protecting depositors, particularly during times of economic uncertainty. Previously, the DPC’s guarantee was restricted to a maximum of Rs500,000.
It is anticipated that the decision to raise the limit will boost the trust of depositors and encourage a greater number of persons to interact with the banking system. This means that the decision comes at a vital time.
To ensure that access to this safety net is uncomplicated and uncomplicated, it is important to note that the deposit protection facility is accessible to all eligible depositors at no additional cost.
To emphasize the significance of preserving a healthy banking environment, the guarantee will not be activated until the State Bank of Pakistan (SBP) declares a bank to be a failed organization.
The State Bank of Pakistan, also known as SBP Bank Bank depositors are protected by deposit protection charges (DPC) Deposit rates
