Lahore: The State Bank of Pakistan (SBP) has reassured the public that 98% of funds held in bank accounts nationwide are secure, according to a news source on December 1.
As per the details, the SBP disclosed in its recently released annual report that out of the total 70.30 million scheduled bank accounts in the country, a substantial 70.15 million accounts, equivalent to 98%, are covered by the protection of the Deposit Protection Corporation (DPC).
Moreover, the DPC — established in 2018 — serves the crucial role of safeguarding depositors’ funds in the event of a bank failure. All banks operating in Pakistan are members of the DPC, and it guarantees the protection of deposits up to PKR 500,000 in case of such an unfortunate circumstance.
The annual report from the SBP aims to provide depositors with essential information regarding the security of their funds within banks. Notably, since the inception of the DPC, all banks have consistently adhered to its requirements, ensuring a robust protective mechanism for depositors.
The SBP has taken the opportunity to advise depositors to opt for banks that exhibit strong capitalization and effective management. Additionally, individuals are encouraged to carefully review the terms and conditions associated with their deposits before making any financial commitments.