What deposit protection is
Deposit protection, also called deposit insurance, is a scheme that repays depositors up to a set limit if their bank fails. In Pakistan the scheme is run by the Deposit Protection Corporation (DPC), which operates under the State Bank of Pakistan (SBP).
The aim is simple. Small depositors should not lose their savings because a bank collapses, and people should have less reason to rush to withdraw cash at the first rumour.
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How DPC coverage works
Coverage follows these general principles:
- Per depositor, per bank. The limit applies to the total you hold at a member bank. It does not apply separately to each account at that bank.
- Member banks. Only banks that are members of the scheme are covered. Check whether your bank is a member.
- Eligible deposits. Common deposit types such as current, savings and term deposits are usually eligible. Deposits held by banks and some other institutions are usually excluded.
- Payout up to the limit. If your balance is above the limit, the extra amount is not guaranteed by the DPC. You would need to recover it through the bank's liquidation process.
This site does not list the current DPC coverage limit, the list of member banks or the exact exclusions. These details can change. Check the current figures on the official DPC section of the SBP website and note the date you checked.
Are bank deposits safe in Pakistan?
The DPC is one of several protections. Banks are licensed and supervised by the SBP. They must meet capital and liquidity rules. Deposit insurance is a backstop if those safeguards fail.
In practice, depositors can lower their risk in these ways:
- Keep the balance at each bank within the DPC limit if you have large savings.
- Spread larger amounts across different member banks. Accounts at the same bank are added together toward the limit.
- Keep account records, deposit receipts and term deposit certificates in a safe place.
For rates, tenors and how term deposits compare, see Bank deposits. For the policy rate that drives deposit profit rates, see SBP rates and economy.
What DPC does not cover
Deposit insurance covers bank deposits only. Other places where people keep money work differently.
| Product | Covered by DPC? | What protects it |
|---|---|---|
| Bank current, savings and term deposits at member banks | Yes, up to the limit | DPC scheme plus SBP supervision |
| National Savings certificates and accounts | Not a bank deposit | Issued through CDNS as government instruments. See National Savings schemes |
| Mutual funds | No | Fund rules and trustee arrangements. Value can go down. See Mutual funds |
| T-bills and PIBs | No | Government debt. See T-bills and PIBs |
| PSX shares | No | Investor protections at the exchange level, not deposit insurance |
| Money with offshore trading platforms | No | Per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse |
Offshore trading accounts
Money sent to an overseas forex or CFD platform is not a bank deposit in Pakistan. The DPC does not cover it. On platform approval, per the SECP, offshore forex/CFD platforms operate without regulatory approval in Pakistan. Also, per the SBP, remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)).
Leveraged CFD and forex trading can also lose money fast, separate from any question of platform safety. For more on the legal side, read Law and regulators and Regulation and Safety.
How to check your own cover
- Confirm your bank is a DPC member on the official SBP or DPC website.
- Add up all your eligible balances at that bank, including joint and term deposits, following the official rules.
- Compare the total with the current coverage limit published by the DPC.
- Write down the date you checked. Limits and rules can be revised.
Frequent questions
What is the Deposit Protection Corporation?
It is Pakistan's deposit insurance body, run under the SBP. It repays eligible depositors up to a set limit if a member bank fails.
What is the DPC coverage limit?
The limit is set and published by the DPC and can change. Check the current figure on the official SBP or DPC website.
Is the limit per account or per person?
It applies per depositor at each member bank. Several accounts at the same bank are counted together.
Are National Savings schemes covered by the DPC?
They are not bank deposits. They are government instruments issued through CDNS, so a different protection applies.
Does deposit protection cover money in a trading account?
No. Balances with brokers, and especially with offshore platforms, are not bank deposits and are not covered by the DPC.