The Deposit Protection Company (DPC) has announced that it will increase the size of the guarantee for all eligible depositors of the bank by 100 percent, to Rs.0.5 million. At this stage, about 95 percent of eligible depositors are fully protected.
The limit has been revised to to compensate small and financially inexperienced depositors for the limit of protected deposits in case of Bankruptcy of the bank.
In the past, the DPC has established a threshold amount of Rs. 250,000 per depositor as guarantee against the Bankruptcy, to protect eligible depositors.
To increase investor confidence and maintain financial stability, the company’s board members decided earlier this month to increase the size of the guarantee by 100 percent.
The DPC decided to raise the level of the protected deposit to Rs. 500,000 rupees (five hundred thousand rupees) per depositor – directly to the bank. All banks are encouraged to make these changes to the notice primarily for their employees and depositors.
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