Pdic Frequently Ask Questions

What is the Philippine Deposit Insurance Corporation (PDIC)?
threatens the monetary and financial stability of the banking system that
may have systemic consequences.
PDIC is a government instrumentality created in 1963 by virtue of Republic

Act 3591 to insure the deposits of all banks which are entitled to the
benefits of insurance. The latest amendments to RA 3591 are contained in
RA 9576 signed into law on April 29, 2009. RA 9576 increased the
maximum deposit insurance coverage to P500,000.00. The new law also
includes important provisions to ensure that the PDIC remains financially
and institutionally strong to fulfill its mandate under its Charter.
What is an insured deposit?
The PDIC now has the authority to determine which deposit products are
covered by insurance. The PDIC is also authorized to conduct independent
special examination of banks and may inquire into or examine deposit
accounts of ailing banks in the event there is a finding of unsafe and
unsound banking practices.
A joint account shall be insured separately from any individually-owned

deposit account.
Part of the financial strengthening measures for the PDIC, on the other
hand, include exemption from taxes and the authority to issue sovereign
bonds, debentures and other debt issuances.
The term insured deposit means the amount due to any bona fide
depositor for legitimate deposits in an insured bank net of any obligation of
the depositor to the insured bank as of date of closure, but not to exceed
P500,000.00.
R.A. No. 9576 stipulates that PDIC will not pay deposit insurance for the
following accounts or transactions:
1.
2.
Investment products such as bonds, securities and trust accounts;

Deposit accounts which are unfunded, fictitious or fraudulent;
The PDIC is an attached agency of the Department of Finance.
3.
Deposit products constituting or emanating from unsafe and

unsound banking practices;
What is PDICs overall mandate?
4.
PDIC exists to provide permanent and continuing deposit insurance

coverage for the depositing public to help promote public confidence and
stability in the economy. It ensures prompt payment of insured deposits,
exercises complementary supervision of banks, adopts responsive
resolution methods, and applies efficient management of receivership and
liquidation functions.
Deposits that are determined to be proceeds of an unlawful activity

as defined under the Anti-Money Laundering Law.
Are all banks members of PDIC?
Membership of banks to PDIC is mandatory; hence, all operating banks are
members of PDIC.
What types of deposits are insured by PDIC?

What are the functions of PDIC?
Deposit Insurer
Co-regulator of Banks
Receiver and Liquidator of Closed Banks
Except for the exclusions stipulated in RA 9576, deposits of all commercial

banks, savings and mortgage banks, rural banks, private development
banks, cooperative banks, savings and loan associations, as well as
branches and agencies in the Philippines of foreign banks and all other
corporations authorized to perform banking functions in the Philippines, are
insured with PDIC. As for Philippine banks with branches outside the
country, RA 9576 stipulates that subject to the approval of the Board of
Directors, any insured bank with branch outside the Philippines may elect
to include for insurance its deposit obligations payable at such branch.
What is PDICs maximum deposit insurance coverage?

Effective June 1, 2009, the maximum deposit insurance coverage is
P500,000 per depositor. All deposit accounts by a depositor in a closed
bank maintained in the same right and capacity shall be added together.
Under R.A. No. 9576, the PDIC may propose to adjust the MDIC, subject to
the approval of the President of the Philippines, in case of a condition that
Foreign currency deposits are also insured by PDIC pursuant to RA 6426

(An act instituting a foreign currency deposit system in the Philippines,
and for other purposes) and Central Bank (CB) Circular No. 1389.
Depositors may receive payment in the same currency in which the insured
deposit is denominated.
Exclusions from deposit insurance coverage as stipulated in R.A. No. 9576:

How is insurance coverage determined?
1.
2.

3.

4.

Are deposits maintained in branches and subsidiaries of foreign
banks operating in the Philippines insured by the PDIC?
In determining the insured amount, the outstanding balance of each

account is adjusted, such that interests are updated, withholding taxes are
deducted, accounts maintained by a depositor in the same right and
capacity are added together; and whenever applicable, unpaid loans and
other obligations of the depositor are deducted; and in no case shall
insured deposit exceed P500,000.
R.A. No. 9576 stipulates that PDIC will not pay deposit insurance for the
following accounts or transactions:
Yes, the PDIC Charter provides that the deposits in branches and
subsidiaries of foreign banks licensed by the Bangko Sentral ng Pilipinas
(BSP) to perform banking functions in the Philippines are insured by the
PDIC.
1.
2.

3.

Are deposits maintained in Philippine banks with branches outside

the Philippines insured by the PDIC?
4.

The PDIC Charter provides that a Philippine bank may elect to insure with
the PDIC its deposits in branches outside the Philippines. As of 31
December 2012, no Philippine bank has elected to insure deposits in their
foreign branches with PDIC.
To verify if your deposits in a branch of a Philippine bank outside the
Philippines are covered by deposit insurance in the host foreign country,
please inquire with the account officer of your branch.
What specific risks to a bank does PDIC cover?

PDIC covers only the risk of a bank closure ordered by the Monetary Board.
Thus, bank losses due to theft, fire, closure by reason of strike or existence
of public disorder, revolution or civil war, are not covered by PDIC.
Shall the depositor pay any insurance premium to PDIC?

No. Insurance premium is paid by the banks, not by the depositors. The
bank is assessed 1/5 of 1% per annum of the assessment base of the bank.
Can PDIC insurance coverage be increased by having several

accounts in the same name in an insured bank?
No. Deposit insurance coverage is not determined on a per-account basis.
The type of account (whether checking, savings, time or other form of
deposit) has no bearing on the amount of insurance coverage.
If I have deposits in several different insured banks, will my

deposits be added together for insurance purposes?
No. Deposits in different banking institutions are insured separately.
However, if a bank has one or more branches, the main office and all
branch offices are considered as one bank. Thus, if you have deposits at
the main office and at one or more branch offices of the same bank, the
deposits are added together when determining deposit insurance
coverage, the total of which shall not exceed P500,000.
Is there a need for a depositor to file his claim for insured deposit
with PDIC?
Yes. Depositors will be advised through the national and/or local media and
posters at the premises of the closed insured bank and other public places
within the locality on the schedule of distribution of claim forms by PDIC,
receiving of claim forms by PDIC, and the prescriptive date of filing claims
by the depositors.
When should the depositor of a closed insured bank file his claim
with PDIC?
The depositor of the closed insured bank has 24 months from date of bank
takeover to file his deposit insurance claim.
What happens when the depositor of a closed bank fails to file his
claim within the 24-month period?
All rights of the depositor with respect to the insured deposit shall no
longer be honored. But he may still make a claim against the assets of the
closed bank.
How long does it take PDIC to settle a claim for insured deposit?
PDIC aims to pay valid claims as soon as possible. Prior to payout, claims
are examined thoroughly. This is to protect the Deposit Insurance Fund
(DIF) which is the source of insurance payments. Sometimes, depositors
mistakenly assume that the payouts are sourced from their deposits. This
is not the case. The payouts are from PDICs own funds.
The claim for insured deposit should be settled within six (6) months from
the date of filing provided all requirements are met but the claim must be
filed within twenty-four (24) months after bank takeover. The six-month
period shall not apply if the documents of the claimant are incomplete or if
the validity of the claim requires the resolution of issues of facts and law by
another office, body or agency, independently or in coordination with PDIC.
What processes are involved before PDIC starts servicing claims?

Deposit records are subjected to an examination prior to the start of
servicing/settlement of claims. Claims are evaluated and processed
according to PDIC's standard procedures.
How long does the pre-settlement examination take?

The length of time needed for the pre-settlement examination of deposit
liabilities of a closed insured bank largely depends on the completeness
and accuracy of records turned over by the Bank to PDIC and the number
of deposit accounts to be examined.
If the deposit account in a closed bank is more than P500,000.00,

what happens to the excess of the maximum amount of insured
deposit?
If the closed bank is not rehabilitated or taken over by another bank,

amount in excess of the P500,000 coverage can still be claimed upon the
final liquidation of the remaining assets of the closed bank.
The claim may be filed with the Liquidator of the closed bank but payment
of the said claim will depend on the bank's available assets to settle its
preferred claims (Government taxes, labor claims, secured credits and
trust funds) and approval of the Liquidation Court. The schedule of
payment beyond the P500,000.00 maximum insurance shall be based on
priorities set by law.

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What is the Philippine Deposit Insurance Corporation (PDIC)?

PDIC is a government instrumentality created in 1963 by virtue of Republic

What is an insured deposit?

A joint account shall be insured separately from any individually-owned

Investment products such as bonds, securities and trust accounts;

The PDIC is an attached agency of the Department of Finance.

Deposit products constituting or emanating from unsafe and

What is PDICs overall mandate?

PDIC exists to provide permanent and continuing deposit insurance

Deposits that are determined to be proceeds of an unlawful activity

What types of deposits are insured by PDIC?

Except for the exclusions stipulated in RA 9576, deposits of all commercial

What is PDICs maximum deposit insurance coverage?

Foreign currency deposits are also insured by PDIC pursuant to RA 6426

Exclusions from deposit insurance coverage as stipulated in R.A. No. 9576:

Investment products such as bonds, securities and trust accounts;

Deposit products constituting or emanating from unsafe and

Deposits that are determined to be proceeds of an unlawful activity

In determining the insured amount, the outstanding balance of each

Investment products such as bonds, securities and trust accounts;

Deposit products constituting or emanating from unsafe and

Are deposits maintained in Philippine banks with branches outside

Deposits that are determined to be proceeds of an unlawful activity

What specific risks to a bank does PDIC cover?

Shall the depositor pay any insurance premium to PDIC?

Can PDIC insurance coverage be increased by having several

If I have deposits in several different insured banks, will my

What processes are involved before PDIC starts servicing claims?

How long does the pre-settlement examination take?

If the deposit account in a closed bank is more than P500,000.00,

If the closed bank is not rehabilitated or taken over by another bank,

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