The Deposit Protection Corporation Amendment Bill 2024 has increased the deposit protection limit for bank accounts to Rs500,000.

This legislative change was reviewed by the Senate Standing Committee on Finance, which received updates on the bill’s details. Previously, the protection limit for bank deposits was capped at Rs250,000.

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The enhancement in deposit protection reflects a broader effort to bolster financial stability and provide greater security against potential financial shocks. Such regulatory measures are crucial in maintaining confidence in the banking system.

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

This scheme is designed to protect depositors and reinforce the overall stability of the financial system.