Islamabad: The Deposit Protection Corporation (DPC) has doubled the guarantee limit for deposits in member banks to PKR 1,000,000. This change, aimed at boosting depositor confidence and financial stability, will take effect starting October 1, 2024.

According to Zameen.Com, the DPC’s Board of Directors approved this increase from the previous limit of PKR 500,000. The State Bank of Pakistan (SBP) has stated that this adjustment will fully protect about 96% of eligible depositors under the deposit protection scheme, which is designed to safeguard depositor interests without imposing any fees on them.

The scheme ensures that protected deposits will be disbursed only if the State Bank declares a bank as failed, ensuring that the enhanced limit applies solely in such specific instances.