Deposit Protection Mechanism
The Deposit Protection Corporation (DPC) has been established under the Deposit Protection Corporation Act, 2016 as a subsidiary of the State Bank of Pakistan (SBP). The primary objective of DPC is to protect small depositors for the losses incurred by them to the extent of protected amount, in the event of failure of a bank through establishment of Deposit Protection (DP) Waqf Fund. The current limit of protected amount for all eligible depositors is up to PKR 250,000/- (Rupees two hundred and fifty thousand) per depositor per bank. All scheduled banks operating in Pakistan are mandatory member institutions of deposit protection scheme.
For more details, please visit: Deposit Protection Corporation
Shariah-compliant Deposit Protection Mechanism for Islamic Banking Institutions
Under Sections 7 (3) of Deposit Protection Corporation Act, 2016
In terms of Section 7 (3) of the Act, a Shariah-compliant mechanism of deposit protection in respect of Islamic Banking Institutions (IBIS), has been duly approved by State Bank’s Shariah Advisory Committee.
Deposit Protection Waqf (DP Waqf)
The Deposit Protection Waqf (DP Waqf) objective is to provide a Shariah-compliant mechanism for protected depositors of IBIS up to an amount prescribed under Section 7 (1) of the Act. (Rs. 250,000/- per depositor which is subject to change from time to time as per discretion of DPC).
A DP Waqf is established under this mechanism for the protection of depositors of IBIS. The nature of DP Waqf is an account established by Corporation (DPC) to receive premium contributions from participatory/ member IBIS for the purpose of reimbursement of protected deposits of a failed participatory / member IBI. The DP Waqf shall be represented by the Corporation (DPC) in all its affairs.
Deposit Protection Corporation Act
Deposit Protection Corporation Act, 2016
DPC Circulars/Circular Letters 2018
DPC Circular No. 01 of 2018 April 06, 2018 Notification of Board of Directors
DPC Circular No. 02 of 2018 May 31, 2018, Declaration of Commencement of Business of Deposit Protection Corporation
DPC Circular No. 03 of 2018 June 22, 2018 Member Institutions of Deposit Protection
DPC Circular No. 04 of 2018 June 22, 2018, Deposit Protection Mechanism for Banking
DPC Circular No. 05 of 2018 November 05, 2018, Shariah Compliant Deposit
Protection Mechanism for Islamic Banking Institutions
DPC Circular Letter
DPC Circular Letter No. 01 of 2018 October 15, 2018 Exclusion of Deposits of Various
Institutions from Protected Deposits