Deposit Protection Corp starts today

KARACHI: State Bank of Pakistan (SBP) on Thursday announced that Deposit Protection Corporation (DPC), set up to safeguard the interests of small depositors, would become operational today (Friday).

“Consequent upon the promulgation of the Deposit Protection Corporation Act, 2016, the Deposit Protection Corporation has been established as a subsidiary of the SBP for protection of small depositors in order to ensure financial stability of the system,” the SBP said in a circular.

“It’s hereby announced that the Deposit Protection Corporation shall commence its business with effect from 1st June, 2018. Further, in terms of Section 33 and 7 (4) of DPC Act, Deposit Protection Regulations for banks and guaranteed amount will be communicated in due course.”

The objective of the Corporation as enshrined in Section 5 of the Act is to compensate the depositors for losses incurred by them to the extent of protected deposits in the event of failure of a member institution, as notified by State Bank of Paksitan under sub-section (1) of Section 21, the central bank added.