Are digital banks in Malaysia safe? PIDM coverage explained
What PIDM actually protects at Malaysia’s licensed digital banks, and why an e-wallet is not the same thing.
PIDM cover is automatic at member banks for eligible deposits, up to RM250,000 per depositor per bank. You do not apply for it separately.
An e-wallet balance is not a deposit. PIDM’s 6 February 2026 explainer states that e-wallets are not PIDM-protected.
What the RM250,000 limit covers
PIDM’s digital-bank explainer (6 February 2026) says licensed digital banks are also PIDM member banks, and that eligible deposits, including common products such as savings, current and fixed deposits, are protected up to RM250,000 per depositor per member bank if a member bank fails.
The limit is per bank, not a single limit across the whole industry. Deposits at two different member banks have two separate limits. The five digital banks on the member list are GX Bank, Boost Bank, YTL Digital Bank Berhad (Ryt Bank), AEON Bank (M) Berhad and KAF Digital Bank Berhad.
PIDM is about bank failure, not about a delayed DuitNow, a frozen app or a scam. Those problems have different official channels. See account access problems.
What PIDM does not cover
| Item | PIDM cover? |
|---|---|
| Eligible deposits at a member digital bank | Yes, up to RM250,000 per depositor per bank |
| E-wallets (PIDM names TNG eWallet, GrabPay, Boost, ShopeePay and BigPay as examples) | No (PIDM says e-wallets are not protected) |
| Maybank MAE (Maybank’s October 2020 PDS: “Not protected by PIDM”) | No |
| Investment products inside a wallet or app (for example a money-market fund) | Not as a bank deposit. Read the official product sheet |
| Money you have borrowed (loans, FlexiCredit, Ryt Credit, financing-i) | No. Outstanding borrowing is still your debt |
Some e-money issuers explain that customer funds are held in trust accounts at licensed banks. That is a different legal arrangement from a deposit in your own name at a digital bank. For the official regulator view, start with PIDM’s article, then read the issuer’s own help page.
FAQs
Is Ryt Bank safe?
It is a BNM-licensed bank and a PIDM member, so eligible deposits are covered up to RM250,000 per depositor. That is the protection question this page answers.
Is GX Bank safe?
Same answer: licensed digital bank, PIDM member, RM250,000 limit on eligible deposits.
If I keep money in TNG eWallet, is it PIDM-insured?
PIDM says e-wallets are not protected by PIDM. Read TNG’s official help for how it holds customer funds.