Short answer: Pakistan’s Deposit Protection Corporation protects eligible deposits up to Rs1,000,000 per depositor per bank if the State Bank of Pakistan declares a member bank failed. The limit applies across all eligible accounts you hold at that bank, not separately to every account.
Sources checked: 30 October 2026. The amount and eligibility rules below come from the Deposit Protection Corporation’s current depositor FAQ. Check that page again before relying on the limit because DPC can update it.
What deposit protection covers
Deposit protection is a safety net for eligible depositors when the State Bank of Pakistan declares a member bank failed. DPC is an SBP subsidiary created under the Deposit Protection Corporation Act, 2016.
The current protected amount is up to Rs1,000,000 per eligible depositor per bank. It is a ceiling, not an extra payment. If your eligible balance at the failed bank is Rs350,000, protection is based on that balance. If the balance is Rs1.4 million, DPC protection is capped at Rs1 million; the remaining portion becomes a claim in the liquidation process.
DPC says all scheduled banks operating in Pakistan are currently members. Membership alone does not make every depositor and every balance eligible.
Which accounts can be protected
DPC lists these eligible account types for an eligible depositor:
- current and savings accounts, including Roshan Digital Accounts;
- branchless banking accounts;
- fixed-term deposits;
- call deposit receipts and security deposit receipts;
- eligible cash margins or collateral balances after amounts owed to the bank are settled;
- foreign-currency deposits;
- profit accrued on an eligible deposit up to the cut-off date.
Foreign-currency deposits are reimbursed in Pakistani rupees at the conversion rate declared by SBP for the bank-failure notification date.
Protection is automatic for eligible depositors. You do not apply in advance and a bank is not allowed to pass the cost of deposit protection to you.
The per-depositor, per-bank rule
The easiest way to understand the limit is to group accounts by legal depositor and bank.
If you have three eligible accounts at one bank, DPC adds them together for the Rs1,000,000 limit. Conventional and Islamic deposits at the same bank are also combined. Opening more accounts at that bank does not multiply the protection.
Eligible deposits at another member bank receive a separate limit. That means the rule is per bank, not one Rs1,000,000 limit across the entire banking system.
A sole-proprietor account and the proprietor’s personal account at the same bank are treated as belonging to the same depositor for this calculation.
How joint accounts are treated
Each eligible holder of a joint account can receive separate protection, but DPC first assigns the joint balance according to the stated ownership share or a proportionate share. Each person’s share is then added to that person’s other eligible deposits at the same bank.
For example, suppose two people own a Rs1.2 million joint account in equal shares. Each person’s Rs600,000 share is counted with any other eligible balance that person holds at the same bank. It is not automatically a separate Rs1 million limit on top of each holder’s personal accounts.
Keep the account mandate and ownership details current. DPC calculates protection from the failed bank’s records rather than from an informal understanding between account holders.
Who and what may be excluded
DPC’s FAQ excludes several categories. Examples include government bodies, companies, corporations, mutual funds, certain insiders of the failed bank, deposits receiving a preferential return, some unclaimed deposits, and deposits connected to money laundering after conviction.
Deposits at overseas branches of Pakistani banks and branches in Export Processing Zones are not covered by DPC. Eligibility depends on both the depositor and the deposit, so a familiar product name does not settle the question by itself.
If you are unsure, ask the bank to identify the legal account holder and account type, then compare those facts with DPC’s current exclusions. Keep account-opening records and statements. Our bank account opening documents guide explains the records banks commonly request.
What happens after a bank failure
Deposit protection is triggered when SBP declares a member bank failed. A falling share price, service outage, rumour or temporary restriction is not the same event.
DPC pays the protected amount using the failed bank’s records and the balance at the applicable cut-off. Unsettled instruments in transit are dealt with through the liquidation process rather than assumed to be part of the protected balance.
Any eligible amount above the protected ceiling is not erased, but DPC does not cover it. The depositor can claim that unprotected portion from the official liquidator. The timing and recovery then depend on the liquidation.
A practical protection check
Use this checklist for each bank where you keep money:
- Confirm that the institution is a scheduled bank and DPC member.
- Confirm that the legal account holder is an eligible depositor.
- Add all eligible balances held by that depositor at the same bank.
- Include conventional, Islamic, fixed-term and foreign-currency deposits in the same-bank total where eligible.
- Add the depositor’s share of any joint account.
- Compare the result with the current Rs1,000,000 ceiling.
- Repeat the calculation separately for each other member bank.
This is a protection calculation, not a recommendation to move money. Product access, fees and service quality are separate questions. If you are comparing a bank account with a wallet, read our bank account versus EMI wallet guide.
