KARACHI – Bank account deposit protection limit has been increased to half million under deposit Protection Corporation Amendment Bill 2024.

Reports in local media said a session of the Senate Standing Committee on Finance reviewed the Deposit Protection Corporation Amendment Bill 2024.

Committee members were briefed on the amendment and it was also revealed that bank deposits up to Rs500,000 will now receive legal protection. Before this amendment, deposits up to Rs2.5 lacs were covered.

The stability of financial systems is a critical for policymakers across the globe. To protect against various financial shocks, such regulatory frameworks are used which include tools like deposit protection schemes.

State Bank of Pakistan introduced a formal Deposit Protection Scheme (DPS) as part of its comprehensive framework to ensure the safety and soundness of the banking system.