State Bank of Pakistan 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.
The current limit of protected amount for all eligible depositors is up to PKR 500,000/- (Rupees five hundred thousand) per depositor per bank. All scheduled banks operating in Pakistan are mandatory member institutions of deposit protection scheme.
For more information and clarity, detailed Frequently Asked Questions (FAQs) have been developed and posted at DPC website http://www.dpc.org.pk/.
Important Information
Instructions and regulations issued by Deposit Protection Corporation can be accessed through the following links:
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Download |
| Notification of Board of Directors |
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| Declaration of Commencement of Business of Deposit Protection Corporation
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| Member Institutions of Deposit Protection Corporation (DPC)
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| Enhancement of Guarantee Amount Protected Deposit
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Product Brochures
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Download |
| Samba English Brochure |
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| Samba Urdu Brochure
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Frequently Asked Question
For Depositors
1. What is Deposit Protection?
Deposit Protection is a system established to protect the deposits of eligible depositors up to a specified limit in the event of a bank being declared as a failed bank by State Bank of Pakistan (SBP).
2. What is Deposit Protection Corporation (DPC) and what is its role?
Deposit Protection Corporation (DPC) is a subsidiary of State Bank of Pakistan (SBP) established under the Deposit Protection Corporation Act, 2016. The role of the Corporation is to provide a robust deposit protection mechanism to ensure payment of protected amount to the eligible depositors of a DPC member bank, in the event of it being declared as a failed bank by State Bank of Pakistan (SBP).
3. What is the protected amount determined by DPC for the protection of eligible depositors?
Presently, a protected amount of up to PKR 500,000/- per depositor per bank has been determined by DPC for the protection of eligible depositors.
4. What is the benefit of Deposit Protection?
Deposit Protection will provide prompt access to the guaranteed amount i.e. up to PKR 500,000/- to the eligible depositors of a bank declared as failed by State Bank of Pakistan.
5. How do I know if my bank is a member bank of DPC or Not?
Presently all scheduled banks operating in Pakistan are members of DPC. Following is the list of banks that are members of DPC. This list is also available at DPC’s website: http://www.dpc.org.pk/Circulars/2020/CL1-Annex-A.pdf
1- Industrial Development Bank Limited
2- SME Bank Limited
3- The Punjab Provincial Cooperative Bank Limited
4- Zarai Taraqiati Bank Limited
5- First Women Bank Limited
6- National Bank of Pakistan
7- Sindh Bank Limited
8- The Bank of Khyber
9- The Bank of Punjab
10- Allied Bank Limited
11- Askari Bank Limited
12- Bank Alfalah Limited
13- Bank AL Habib Limited
14- Faysal Bank Limited
15- Habib Bank Limited
16- Habib Metropolitan Bank Limited
17- JS Bank Limited
18- MCB Bank Limited
19- SAMBA Bank Limited
20- Silk Bank Limited
21- Soneri Bank Limited
22- Standard Chartered Bank (Pakistan) Limited
23- Summit Bank Limited
24- United Bank Limited
25- Al Baraka Bank (Pakistan) Limited
26- Bank Islami Pakistan Limited
27- Dubai Islamic Bank Pakistan Limited
28- Meezan Bank Limited
29- MCB Islamic Bank Limited
30- Citibank N.A.- Pakistan Operations
31- Deutsche Bank AG- Pakistan Operations
32- Industrial and Commercial Bank of China Limited- Pakistan Branches
33-Bank of China Limited- Pakistan Operations
6. How do I know if my deposit is eligible for deposit protection or not?
Your deposit is eligible for protection, if it does not belong to any of the following categories:
1 Depositors / deposits mentioned in the list below;
- Government or Government Institutions
- Member institutions of DPC
- Companies as defined under Companies Ordinance, 1984/ Companies Act 2017
- Corporations, Modarbas, Mutual Funds
- Branch(es)/ Permanent establishment(s) of foreign entities
- Diplomatic Missions and international organizations/ entities like United Nations, World Bank, IFC, ADB etc.
- Autonomous Bodies
- Deposits on which preferential interest or return has been granted
- Members of Board of Directors and senior management of a DPC member bank
- Partners of auditing firm responsible to certify DPC member bank financial statements
- Persons acquired rights to a deposit after State Bank of Pakistan’s notification of Bank failure under DPC Act 2016
- Spouses, dependent lineal ascendants and descendants and dependent brothers and sisters of the persons specified at sr. no ix, x & xi above
- Deposits arising out of or related to transactions or actions constituting 'money laundering within the meaning of the Anti-Money Laundering Act, 2010, if the offender has been convicted of such offence
2 Amounts reported under unclaimed deposits by a member bank in compliance of section 31 of Banking Companies Ordinance 1962.
3 Deposits maintained at branches and subsidiaries of Pakistani banks operating outside Pakistan and branches located in Export Processing Zones (EPZ).
7. I am an eligible depositor, how do I know if my account is also eligible for deposit protection?
Following type of accounts of eligible depositors are protected by DPC:
- All current and saving accounts including Roshan Digital Accounts (RDA)
- All type of branchless banking accounts
- Fixed term deposits
- Call Deposit Receipts (CDR)/ Security Deposit Receipts (SDR)
- Deposit balance kept as cash margins/ collateral or under lien, that are payable to depositors after satisfaction of all dues that are payable by them to the bank.
- Foreign currency deposits. However, equivalent PKR on the exchange rate declared by SBP on notification date shall be reimbursed
- Profit on any of the above deposits accrued till cut-off date
- Any other type of deposits communicated by DPC from time to time.
8. Does DPC provide protection to my deposits held at an overseas branch of a Pakistani bank?
DPC does not provide protection to depositors of overseas branches of Pakistani banks and branches located in Export Processing Zones (EPZ) across Pakistan.
9. I am a foreign national temporarily living in Pakistan. Does my account maintained in a domestic branch of Pakistani bank is eligible for deposit protection or Not?
Yes, Nationality/ residential status of a depositor does not affect the eligibility of a depositor for deposit protection. However, the bank should be a member institution of DPC. This can be verified from the list of banks available in FAQ#5. The list of member banks is also available on the DPC website at http://www.dpc.org.pk/Circulars/2020/CL1-Annex-A.pdf
10. Do I need to apply for deposit protection?
No, all eligible depositors of member banks of DPC shall automatically stand qualified for deposit protection.
11. I have a joint account with my wife in a bank. Does each of us enjoy separate deposit protection by DPC in case of bank failure?
Yes, each eligible depositor of a joint account enjoys separate protection by DPC. However, any pre-defined share or proportionate share of each depositor in a joint account shall add up to his/ her other deposit balances in the same bank for the purpose of calculating the protected amount for reimbursement to that depositor.
12. Can I claim an additional protection from DPC over and above the maximum protected amount of PKR 500,000?
No, the maximum protected deposit currently prescribed by DPC is PKR 500,000/-.
13. What happens to unprotected portion of my deposits?
Depositor may claim for the unprotected portion of their deposits from the official liquidator.
14. Does DPC provide separate coverage for conventional & Islamic deposits of a single depositor?
No, DPC provides a total coverage of up to PKR 500,000/- to each eligible depositor against all of his/her conventional & Islamic deposits, held in the same bank.
15. Whether DPC provides separate protection against multiple accounts of an eligible depositor maintained with different banks?
Yes, a single depositor can receive a protection of up to PKR 500,000/- against all his/ her deposits maintained with each member bank. However, maximum protection is capped at PKR 500,000/- for all accounts in one bank based on ‘per depositor per bank principle’.
16. In which currency the protected amount shall be reimbursed to eligible depositors?
The protected amount shall be reimbursed to eligible depositors in Pak Rupees. Foreign currency deposits shall also be reimbursed in equivalent Pak Rupees on the conversion rates declared by SBP for this purpose.
17. Can a bank recover the cost of deposit protection from its depositors?
No, banks are not allowed to recover any cost associated with deposit protection from their depositors.
18. If my bank fails, would DPC pay any interest on my protected deposits at the time of reimbursement?
No, DPC will not pay any further interest or profit on the total claim of the depositor on a failed member bank.
19. I have advised my bank to issue a pay order/ bankers cheque from my account. In addition, I have received a pay order from my insurance company that is forwarded to the bank for credit in my account. What happens to items in transit that are not cleared/ settled on the date of bank failure?
The issues related to instruments in transit that are not settled/ cleared on the date of bank failure shall be addressed during liquidation process. DPC would make payment to eligible depositors based on the outstanding balance(s) available in their deposit account(s) on the date of bank failure as declared by State Bank of Pakistan.
20. I have two accounts in the same bank, one as an individual and other as a Sole Proprietor. Does DPC provide separate protection to both accounts at the time of bank failure?
DPC does not provide separate protection to persons having accounts as an individual and a Sole Proprietor in the same bank. The calculation of protected amount for such depositors is depicted below:
|
Depositor |
Category |
No. of Accounts |
Deposits |
Protected Amount |
|
Mr. XYZ Khan |
Individual |
1 |
200,000 |
--- |
|
Mr. XYZ Khan |
Sole Proprietor |
1 |
340,000 |
--- |
|
Total |
------ |
2 |
540,000 |
500,000 |
21. How DPC would assess the protected amount for different categories of eligible depositors?
The protected amount would be assessed against all deposits of a single depositor held with a failed bank on the date of notification by the State Bank of Pakistan.
The following table clarifies the process of evaluating guaranteed amount for different categories of depositors:
|
Depositor |
Category |
No. of Accounts* in Same Bank |
Total Deposits |
Protected Amount |
|
Mr. XYZ Khan |
Individual and Sole Proprietor |
3 |
600,000 |
500,000 |
|
Ms. ABC Bibi |
Individual |
1 |
300,000 |
300,000 |
|
Mr. RAZ |
Sole Proprietor |
4 |
1,000,000 |
500,000 |
|
ABC Consultancy Ltd |
Partnership Firm |
2 |
700,000 |
500,000 |
|
WBC Builders |
Partnership Firm |
3 |
1,500,000 |
500,000 |
|
MNP Fitness Club |
Sole Proprietor |
6 |
1,000,000 |
500,000 |
|
SINCOS Foundation |
Trust |
1 |
200,000 |
200,000 |
|
TANG-ONN |
Other
|
1 |
100,000 |
100,000 |
*represents either conventional or Islamic or both type of accounts held by a single depositor
22. How would I know if my bank (DPC member institution) has failed?
After the issuance of notification by State Bank of Pakistan (SBP), the Corporation (DPC) shall inform general public through leading newspapers having wide circulation in the country. The information shall include the date after which depositors will receive protected amount from the Corporation and the procedure for payments.
23. How would DPC validate my total deposits held with a failed member institution (bank)?
Deposit balances of all eligible depositors shall be validated on the basis of a comprehensive depositor’s database reported by the failed member institution (bank).
24. If my bank (DPC member institution) fails, when will I receive the coverage amount guaranteed against my deposits from DPC?
DPC shall begin the process of reimbursement to eligible depositors as early as possible after the issuance of failure notification of a member institution by SBP. DPC shall ensure payments to most of the protected depositors are made or tendered within seven working days and that all payments are made or tendered within thirty days at the latest, provided that there is no legal dispute on the deposit or accounts in question.
25. I have deposits in two member institutions (banks) of DPC. What happens to my deposits if they merged?
Your deposits up to the guarantee amount shall continue to be protected separately for a period of one year or full withdrawal or until maturity of the deposits, whichever occurs earlier, from the effective date of merger.
26. Can legal heirs of a deceased depositor of a failed bank claim the guaranteed amount from DPC?
Yes. However, the legal heirs will be required to prove their right to claim the guaranteed amount by acquiring all necessary documents as per the applicable laws.
27. Where should I contact for further information on deposit protection in Pakistan?
You may visit our website
http://www.dpc.org.pk to access further details on deposit protection in Pakistan. You may also write to us electronically at info@dpc.org.pk or through surface mail at the following address:
DEPOSIT PROTECTION CORPORATION
(A Subsidiary of State Bank of Pakistan)
2nd Floor, SBP Bolton Market Building,
M.A. Jinnah Road, Karachi.
For Banks
1. What is Deposit Protection?
Deposit Protection is a system established to protect the deposits of eligible depositors up to a specified limit in the event of a bank being declared as a failed bank by State Bank of Pakistan (SBP).
2. What is Deposit Protection Corporation (DPC) and what is its role?
Deposit Protection Corporation (DPC) is a subsidiary of State Bank of Pakistan (SBP) established under the Deposit Protection Corporation Act 2016 (DPC Act). The role of the Corporation is to provide a robust deposit protection mechanism to ensure payment of protected amount to the eligible depositors of a DPC member bank, in the event of it being declared as a failed bank by State Bank of Pakistan (SBP).
3. What is the protected amount determined by DPC for the protection of eligible depositors?
Presently, a protected amount of up to PKR 500,000/- per depositor per bank has been determined by DPC for the protection of eligible depositors.
4. What does the term “Eligible Depositor/ Protected Depositor” mean?
Categories of depositors that have been guaranteed payment up to the protected amount under the existing deposit protection mechanism of DPC are referred as “Eligible Depositors/ Protected Depositors”.
5. What is the difference between “Eligible Deposits” and “Protected Deposits”?
Total Deposits held by an eligible depositor in a bank are referred to as “Eligible Deposits”. The maximum amount of reimbursement that an eligible depositor can receive from Deposit Protection Corporation (DPC) at the time of bank failure declared failed by State Bank of Pakistan is referred as “Protected Deposit”. The following table aims to clarify the difference between Eligible and Protected Deposits:
|
Depositor |
Category |
No. of Accounts* in Same Bank |
Total Eligible Deposits |
Protected Deposits |
|
Mr. XYZ Khan |
Individual and Sole Proprietor |
3 |
600,000 |
500,000 |
|
Ms. ABC Bibi |
Individual |
1 |
300,000 |
300,000 |
|
Mr. RAZ |
Sole Proprietor |
4 |
1,000,000 |
500,000 |
|
ABC Consultancy Ltd |
Partnership Firm |
2 |
700,000 |
500,000 |
|
WBC Builders |
Partnership Firm |
3 |
1,500,000 |
500,000 |
|
MNP Fitness Club |
Sole Proprietor |
6 |
1,000,000 |
500,000 |
|
SINCOS Foundation |
Trust |
1 |
200,000 |
200,000 |
|
TANG-ONN |
Other (Adventure Club) |
1 |
100,000 |
100,000 |
*represents either conventional or Islamic or both type of accounts held by a single depositor
6. Who are the member banks of DPC?
Presently all scheduled banks operating in Pakistan are members of DPC. Following is the list of banks that are members of DPC. This list is also available at DPC’s website: http://www.dpc.org.pk/Circulars/2020/CL1-Annex-A.pdf
1- Industrial Development Bank Limited
2- SME Bank Limited
3- The Punjab Provincial Cooperative Bank Limited
4- Zarai Taraqiati Bank Limited
5- First Women Bank Limited
6- National Bank of Pakistan
7- Sindh Bank Limited
8- The Bank of Khyber
9- The Bank of Punjab
10- Allied Bank Limited
11- Askari Bank Limited
12- Bank Alfalah Limited
13- Bank AL Habib Limited
14- Faysal Bank Limited
15- Habib Bank Limited
16- Habib Metropolitan Bank Limited
17- JS Bank Limited
18- MCB Bank Limited
19- SAMBA Bank Limited
20- Silk Bank Limited
21- Soneri Bank Limited
22- Standard Chartered Bank (Pakistan) Limited
23- Summit Bank Limited
24- United Bank Limited
25- Al Baraka Bank (Pakistan) Limited
26- Bank Islami Pakistan Limited
27- Dubai Islamic Bank Pakistan Limited
28- Meezan Bank Limited
29- MCB Islamic Bank Limited
30- Citibank N.A.- Pakistan Operations
31- Deutsche Bank AG- Pakistan Operations
32- Industrial and Commercial Bank of China Limited- Pakistan Branches
33- Bank of China Limited- Pakistan Operations
7. Is there any formal mechanism for the protection of deposits in DPC member institutions (banks)?
Yes, DPC has developed a Deposit Protection Mechanism for its member institutions (banks). For further details, please refer to DPC Circular No. 04, 2018 dated June 22, 2018 available at DPC’s website: http://www.dpc.org.pk/Circulars/2018/C4-Annex-A.pdf
8. Is there a separate Deposit Protection Mechanism for Islamic banking Institutions?
Yes. There is a separate Sharia’h Compliant Deposit Protection Mechanism for Islamic Banking Institutions. For details please refer to DPC Circular No. 05, 2018 dated November 05, 2018 available at DPC’s website: http://www.dpc.org.pk/Circulars/2018/C5-Annex-A.pdf
9. Which Categories of Deposits are excluded from deposit protection?
The following Categories of Deposits are excluded from deposit protection:
1 Depositors / deposits mentioned in the list below;
- Government or Government Institutions.
- Member institutions of DPC.
- Companies as defined under Companies Ordinance, 1984/ Companies Act 2017
- Corporations, Modarbas, Mutual Funds
- Branch(es)/ Permanent establishment(s) of foreign entities
- Diplomatic Missions and international organizations/ entities like United Nations, World Bank, IFC, ADB etc.
- Autonomous Bodies
- Deposits on which preferential interest or return has been granted
- Members of Board of Directors and senior management of a DPC member bank
- Partners of auditing firm responsible to certify DPC member bank financial statements
- Persons acquired rights to a deposit after State Bank of Pakistan’s notification of Bank failure under DPC Act 2016
- Spouses, dependent lineal ascendants and descendants and dependent brothers and sisters of the persons specified at sr. no ix, x & xi above.
- Deposits arising out of or related to transactions or actions constituting 'money laundering within the meaning of the Anti-Money Laundering Act, 2010, if the offender has been convicted of such offence
2 Amounts reported under unclaimed deposits by a member bank in compliance of section 31 of Banking Companies Ordinance 1962.
3 Deposits maintained at branches and subsidiaries of Pakistani banks operating outside Pakistan and branches located in Export Processing Zones (EPZ).
10. Which Type of Accounts are protected by DPC?
Eligible deposits maintained in following Type of Accounts are protected by DPC:
- All current and saving accounts including Roshan Digital Accounts (RDA).
- All type of branchless banking accounts
- Fixed term deposits
- Call Deposit Receipts (CDR)/ Security Deposit Receipts (SDR)
- Deposit balance kept as cash margins/ collateral or under lien, that are payable to depositors after satisfaction of all dues that are payable by them to the bank.
- Foreign Currency Deposits. In case of an eventuality, the equivalent PKR at the exchange rate declared by SBP on notification date shall be reimbursed to the protected depositors
- Profit on any of the above deposits accrued till cut-off date.
- Any other type of deposits communicated by DPC from time to time.
11. What are the basis of charging premium from DPC member institutions (banks)?
The amount of “eligible deposits” disclosed by a member institution (bank) in its annual audited and AGM approved financial statements forms the basis of premium charge from banks.
For Example: Premium charged from a bank during calendar year 2021 would be based on the eligible deposits disclosed in annual audited and AGM approved accounts of the bank for the year 2020.
12. What are the basis of charging premium from banks if the annual audited accounts of previous year are not available/ AGM approved?
A bank would calculate premium payable to DPC on the basis of eligible deposits disclosed in last available annual audited and AGM approved financial statements and keep doing so until the required financial statements become available. Upon the availability of approved annual audited financial statements, the bank would recalculate the premium for relevant calendar year(s) and any difference shall be settled accordingly within seven working days.
13. What is the rate of premium charge?
DPC has determined a fixed rate of 0.16% of eligible deposits disclosed by a bank in its annual audited and AGM approved financial statements of preceding year. The premium is payable in four equal quarterly installments.
14. Can a bank recover the cost of premium from its depositors?
No, banks are explicitly prohibited from recovering costs of premium from their depositors.
15. What is “Per Depositor Per Bank” principle? How DPC would calculate the protected amount payable to its eligible depositors on the cut-off date (Bank failure date)?
“Per Depositor Per Bank” principle is used to determine the coverage available to any eligible depositor up to the protected amount at the cut-off date (the date a DPC member bank is declared failed by SBP).
The following examples are intended to explain the “Per Depositor Per Bank” principle.
Example # 1: Mr. A maintains a current account with a conventional bank having account balance of PKR 200,000/-. At the cut-off date (Bank failure date), the total liability of the bank towards Mr. A shall be PKR 200,000/- only. Accordingly, he shall receive the coverage of PKR 200,000/- from DPC.
|
Conventional/ Islamic |
Account Type |
Account Balance |
Accrual Balance |
Total Balance |
Protected Deposit |
|
Conventional |
Current |
200,000 |
0 |
200,000 |
200,000 |
|
Total Liability & Coverage |
200,000 |
200,000 |
|||
Example # 2: Mr. A holds a term deposit in an Islamic bank with account balance of PKR 200,000/- and an accrued profit of PKR 10,000/ at the cut-off date (Bank failure date). The total liability of the bank towards Mr. A shall be PKR 210,000/-. Accordingly, Mr. A shall receive the coverage of PKR 210,000/- from DPC.
|
Conventional/ Islamic |
Account Type |
Account Balance |
Accrual Balance |
Total Balance |
Protected Deposit |
|
Islamic |
Term Deposit |
200,000 |
10,000 |
210,000 |
210,000 |
|
Total Liability & Coverage |
210,000 |
210,000 |
|||
Example # 3: Mr. A holds a term deposit in an Islamic banking branch of a bank with account balance of PKR 200,000/- and a profit of PKR 10,000/- at a given date. He holds another current account in conventional banking branch of the same bank with account balance of PKR 400,000/- on the same date. The total liability of the bank towards Mr. A shall be PKR 610,000/-. Accordingly, he shall receive the maximum limit of prescribed protected amount i.e. PKR 500,000/-. Moreover, the protected amount shall be proportionally distributed between Islamic & Conventional deposits of Mr. A.
|
Conventional/ Islamic |
Account Type |
Account Balance |
Accrual Balance |
Total Balance |
% Share in Total Deposits |
Protected Deposit |
|
Islamic |
Fixed |
200,000 |
10,000 |
210,000 |
34.43 |
172,131.15 |
|
Conventional |
Current |
400,000 |
0 |
400,000 |
65.57 |
327,868.85 |
|
Total Liability & Coverage |
610,000 |
100.00 |
500,000 |
|||
Example # 4: As an individual, Mr. A holds a current account of PKR 400,000/- and a term deposit of PKR 200,000 with a accrued profit of PKR 10,000/- in an Islamic banking branch of a bank at the cut-off date (Bank failure date). Also in the capacity of sole proprietor, Mr. A holds two more currents accounts in conventional banking branch of the same bank with account balances of PKR 400,000/- and PKR 200,000/- respectively. The total liability of the bank towards Mr. A shall be PKR 1,210,000/-. Accordingly, he shall receive the maximum limit of prescribed protected amount i.e. PKR 500,000/-. The protected amount shall proportionally distribute between Islamic & Conventional deposits of Mr. A.
|
Conventional/ Islamic |
Account Type |
Account Balance |
Accrual Balance |
Total Balance |
% Share in Total Deposits |
Protected Deposit |
|
Islamic |
Current |
400,000 |
0 |
400,000 |
33.06 |
165,289.26 |
|
Islamic |
Fixed |
200,000 |
10,000 |
210,000 |
17.35 |
86,776.86 |
|
Conventional |
Current |
400,000 |
0 |
400,000 |
33.06 |
165,289.26 |
|
Conventional |
Current |
200,000 |
0 |
200,000 |
16.53 |
82,644.63 |
|
Total Liability & Coverage |
1,210,000* |
100.00 |
500,000 |
|||
* All account balances kept by an individual depositor including Sole Proprietors shall add together to arrive at the total liability of a bank towards the depositor.
Example # 5: Mr. A holds a current account of PKR 400,000/- and a joint current account with Mr. B having account balance PKR 200,000/- in an Islamic banking branch of a bank. Mr. A holds two more currents accounts in conventional banking branch of the same bank with account balances of PKR 400,000/- and PKR 200,000/- respectively. At the cut-off date (Bank failure date), the total liability of the bank towards Mr. A shall be PKR 1,100,000/- while total liability of the bank towards Mr. B shall be PKR 100,000/-. Accordingly, Mr. A shall receive the maximum limit of prescribed protected amount i.e. PKR 500,000/- while Mr. B shall receive a separate coverage of PKR 100,000/-. The protected amount allocated for Mr. A shall proportionally distribute between Islamic & Conventional deposits.
|
Conventional/ Islamic |
Account Type |
Account Balance |
Accrual Balance |
Total Balance |
% Share in Total Deposits |
Protected Deposit |
|
Islamic |
Current |
400,000 |
0 |
400,000 |
36.36 |
181,818.18 |
|
Islamic |
Current |
100,000* |
0* |
100,000 |
9.09 |
45,454.55 |
|
Conventional |
Current |
400,000 |
0 |
400,000 |
36.36 |
181,818.18 |
|
Conventional |
Current |
200,000 |
0 |
200,000 |
18.19 |
90,909.09 |
|
Total Liability & Coverage for Mr. A |
1,100,000 |
100.00 |
500,000 |
|||
|
Conventional/ Islamic |
Account Type |
Account Balance |
Accrual Balance |
Total Balance |
Protected Deposit |
|
Islamic |
Current |
100,000* |
0 * |
100,000 |
100,000 |
|
Total Liability & Coverage for Mr. B |
100,000 |
100,000 |
|||
*For a joint account, any outstanding amount shall split between the account holders according to the terms of account opening or equally (in the absence of such terms).
Example # 6: Mr. A has availed a running finance facility of PKR 400,000/- against his current account deposit of PKR 1,000,000/- maintained with a conventional banking branch of a bank. He also holds another current account deposit of PKR 200,000/- with an Islamic banking branch of the same bank. At the cut-off date (Bank failure date), the total liability of the bank towards Mr. A shall be PKR 800,000/- i.e. net-off amount payable to bank by Mr. A. Accordingly, Mr. A shall receive the maximum limit of prescribed protected amount i.e. PKR 500,000/-. The protected amount allocated for Mr. A shall proportionally distribute between Islamic & Conventional deposits.
|
Conventional/ Islamic |
Account Type |
Account Balance |
Accrual Balance |
Total Balance |
Total Balance Net-off Lien |
% Share in Total Deposits (Net-off Lien) |
Protected Deposit |
|
Conventional |
Current |
1,000,000 |
0 |
1,000,000 |
600,000 |
75.00 |
375,000 |
|
Islamic |
Current |
200,000 |
0 |
200,000 |
200,000 |
25.00 |
125,000 |
|
Total Net Liability & Coverage |
550,000 |
800,000 |
100.00 |
500,000 |
|||
Example # 7: Mr. A maintains a current account of PKR 200,000/- with a conventional bank. The same bank has mobilized a current account deposit of PKR 1,000,000/- from a partnership firm “ABC Consultancy Firm” which is jointly owned by Mr. A, Mr. B & Mr. C. At the cut-off date (Bank failure date), the total liability of the bank towards Mr. A shall be PKR 200,000/- while the total liability of bank towards ABC consultancy Firm shall be PKR 1,000,000/. Here, Mr. A shall receive a coverage of PKR 200,000/- while ABC Consultancy Pvt Ltd shall receive a separate coverage of PKR 500,000/-.
|
Conventional/ Islamic |
Account Type |
Account Balance |
Accrual Balance |
Total Balance |
Protected Deposit |
|
Conventional |
Current |
200,000 |
0 |
200,000 |
200,000 |
|
Total Liability & Coverage for Mr. A |
200,000 |
200,000 |
|||
|
Conventional/ Islamic |
Account Type |
Account Balance |
Accrual Balance |
Total Balance |
Protected Deposit |
|
Conventional |
Current |
1,000,000 |
0 |
1,000,000 |
500,000 |
|
Total Liability & Coverage for ABC Consultancy Pvt Ltd |
1,000,000 |
500,000 |
|||
16. For further queries/ clarifications on Deposit Protection, where should a bank contact?
You may visit our website
http://www.dpc.org.pk to access further details on deposit protection in Pakistan. You may also write to us electronically at info@dpc.org.pk or through surface mail at the following address:
DEPOSIT PROTECTION CORPORATION
(A Subsidiary of State Bank of Pakistan)
2nd Floor, SBP Bolton Market Building,
M.A. Jinnah Road, Karachi.