Govt to raise protection limit of Deposit Protection Scheme

The protection limit will be increased by $300,000.

The government plans to raise the protection limit of the Deposit Protection Scheme to $800,000 from the current $500,000.

The Deposit Protection Scheme (Amendment) Bill 2024 seeks to enhance depositor security, uphold banking stability, and align with global and local standards.

The bill will enhance the levy system to ensure that the DPS fund will reach its target fund size on time with the increased protection limit.

The bill also seeks to provide enhanced coverage to affected depositors upon a bank merger or acquisition and requires the DPS membership sign to be displayed on the members’ mobile banking accounts.
 
The bill will have its first reading on 8 May.