On Thursday, the Deposit Protection Corporation (DPC) released its first Annual Report since its inception in June 2018. The report outlines substantial advancements in the deposit protection structure, corporate governance, and public awareness, as well as the corporation’s financial statements for FY2021. It’s worth noting at this point that the DPC’s primary job is to reimburse depositors for their losses in the case of a bank failure, as specified in the Deposit Protection Corporation Act, 2016. According to the reports, the number of depositors covered by the corporation’s protection has expanded as a result of the solid development trend in bank deposits, which have ballooned to an all-time high of PKR20 trillion in FY21. The corporation’s coverage is mostly for modest depositors. As of December 31, 2020, 98.9 percent of conventional banking depositors and 98.5 percent of Islamic banking depositors are eligible for DPC protection in the event their bank is declared insolvent by the SBP. As of December 31, 2020, 18pc of conventional banking eligible deposits and 13pc of Islamic banking eligible deposits are fully protected. This Annual Report is being prepared in response to the increase in the coverage amount to Rs500,000 per depositor-per bank from the previous Rs250,000. This 100 percent increase in coverage is likely to benefit individual depositors and has resulted in an increase in the number of depositors who are fully covered. Improved depositor coverage is projected to significantly boost depositors’ confidence in the country’s financial system, contributing to the improvement of financial stability. Due to the fact that the concept of explicit and restricted deposit protection is still novel in Pakistan, this paper attempts to educate readers about basic deposit protection concepts. It educates readers about the single depositor view (SDV), as well as fixed-rate and risk-based premium systems. Additionally, the report includes statistics on deposit coverage and premium collection, as well as an overview of DPC’s risk management structure. The corporation intends to make such reports a yearly feature going forward, in order to periodically update the public and other important stakeholders on its progress and performance. Notably, the report includes thorough Frequently Asked Questions (FAQs) to assist readers in comprehending the deposit protection mechanism. As the corporation’s first such report, it makes an attempt to capture all significant developments from its inception in June 2018. The Deposit Protection Corporation Act, 2016, states that all 33 scheduled banks in Pakistan are members of the DPC’s deposit protection system. There are four foreign banks, four specialized banks, twenty private sector banks, and five public sector banks among the 33 member banks.