Deposit Protection Mechanism
Deposit Protection Corporation (DPC), a subsidiary of the State Bank of Pakistan, has been set up through promulgation of the Deposit Protection Corporation Act, 2016 (the Act) passed by the National Assembly of Pakistan intending to provide protection to small depositors of banks operating in Pakistan to ensure the financial stability of and maintain the public trust in the financial system. The act extends to the whole of Pakistan and is effective from July 01, 2018. For more details, please visit www.dpc.org.pk
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