• Membership of the Deposit Protection Corporation is compulsory for all banks scheduled under sub-section (2) of section 37 of the State Bank of Pakistan Act, 1956.

  • Under the provisions of Section 7(1) of the Deposit Protection Corporation Act, 2016, an amount up to Rs. 500,000 (five hundred thousand) per depositor per bank has been determined by the Corporation to be the guaranteed amount. The guaranteed amount may also be referred to as the protected amount or protected deposit. The following types of deposits and banking accounts shall be protected/ guaranteed by the Corporation;
a)  All types of current and saving accounts

b)  All types of branchless banking accounts

c)  Fixed term deposits/ accounts

d)  Call deposit receipts/ Security deposit receipts

e)  Deposit balances kept as cash margins/ cash collateral or under lien, that are payable to protected depositors after satisfaction of all dues payable by them to the bank

f)  Foreign currency accounts (under section 21(7) of the Act, the foreign currency denominated depositors shall be paid the Rupee equivalent of the protected amount at the exchange rate declared by the State Bank of Pakistan on the day of the notification under section 21 (1) of the Act)

g)  Any profit accrued and unpaid (under the terms and conditions of the product) on any or all of the above accounts and instruments

h)  Any other type/ category of accounts or deposits, as may be communicated by the Corporation from time to time

  • The following types of deposits and banking accounts shall not be protected/ guaranteed by the Corporation
a)  Persons who have been granted preferential interest or return in deviation from the terms and conditions announced by a member institution that it is obliged to apply to all its depositors of similar category

b)  Members of the board of directors and senior management of a member institution including its Chief Executive Officer and Key Executives

c)  Partners of auditing firms responsible to certify the member institution’s financial statements

d)  Persons having acquired rights to a deposit after the issuance of the State Bank of Pakistan ’s notification under sub section (1) of Section 21

e)  Spouse dependent lineal ascendants and descendants and dependent brothers and sisters of the persons specified in (b), (c) and (d)

f)  Any member institution whose deposits are in its name and on its account

g)  Government or government institutions
h)  Any company as defined under the Companies Act, 2017

i)  Any other class of persons or institutions as specified by the Board from time to time. Provided that where the Board specifically excludes any class of persons or institutions, such decisions shall be published by the Corporation in two daily newspapers having wide circulation

j)  Protected deposits shall not cover deposits arising out of or related to transactions or actions constituting “money laundering” within the meaning of the Anti-Money Laundering Act, 2010 (VII of 2010), if the offender has been convicted of such offense

k)  Corporations

l)  Modarbas

m)  Mutual Funds

n)  Branch(es), Permanent establishment(s) of foreign entities

o)  Diplomatic Missions and international organizations/ entities like United Nations, World Bank, IFC, ADB, etc.

p)  Autonomous bodies

  • If a member bank has been notified by State Bank of Pakistan as a failed institution under section 21 (1) of the Deposit Protection Act, 2016, the guarantee amount shall become payable to the protected depositors. The Corporation shall commence the procedure for reimbursement of protected deposits as per procedure laid down under Section 21 of Deposit Protection Corporation Act, 2016.