RFBT PDIC Law PDF

University of Southern Philippines Foundation
College of Accountancy
Salinas Drive, Lahug, Cebu City
Regulatory Framework for Business Transactions November 29, 2020

Philippine Deposit Insurance Corporation (PDIC) Law Atty. J.M. Denila, CPA
What specific points will be asked from this topic?

The following are of primary concern:
➢ Insurable deposits
➢ Maximum liability ➢ Requirements for claims
What is the relevant law on this topic?
Republic Act No. 3591 established the Philippine Deposit Insurance Corporation, and defined its powers and duties
What is the main function of the PDIC?
PDIC is created to insure the deposits of all banks which are entitled to the benefits of insurance.
What are the specific functions of the PDIC?

The PDIC serve the following functions:
➢ Deposit insurer
➢ Co-regulator of banks ➢ Receiver and liquidator of closed banks
What is an insured deposit?
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.
How shall joint accounts be insured?
A joint account shall be insured separately from any individually-owned deposit account
What types of deposits are insured by the PDIC?

Deposits in the following banks are insured by the PDIC:
➢ Commercial banks
➢ Savings and mortgage banks ➢ Branches and agencies in the Philippines of foreign
➢ Private development banks banks
➢ Cooperative banks ➢ Other corporations authorized to perform banking
➢ Savings and loan associations functions in the Philippines
Are deposits in Philippine banks with branches outside the Philippines insured by the PDIC?
Subject to the approval of the Board of Directors, any insured bank with branch outside the may elect to include for insurance its
deposit obligations payable at such branch.
Are deposits in foreign currency insured?
Yes, foreign currency deposits are insured.

This is pursuant to Republic Act No. 6426 (An act instituting a foreign currency deposit system in the Philippines, and for other
purposes), and Central Bank Circular No. 1389.
Depositors may receive payment in the same currency in which the insured deposit is denominated.
Which accounts or deposits will not have deposit insurance?

Republic Act No. 9576, amending Republic Act No. 3591, enumerates that the following accounts or transactions on which the PDIC
will not pay deposit insurance:
➢ Investment products such as bonds, securities and trust accounts
➢ Deposit accounts which are unfunded, fictitious or fraudulent
➢ Deposit products constituting or emanating from unsafe and unsound banking practices
➢ Deposits that are determined to be proceeds of an unlawful activity as defined under the Anti-Money Laundering Law
What is the maximum liability of the PDIC for insured deposits?
Effective June 1, 2009, the maximum deposit insurance coverage is P500,000 per depositor.
What if the depositor has more than one account in one bank?
All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together.
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.
What if the depositor has more than one account but in different banks?
Deposits in different banking institutions are insured separately.
What if the depositor has more than one account but in different branches of the same bank?
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.
What are the requirements for claiming the insurance?
The following are the requirements in filing claims:

➢ Original evidence of deposits such as savings passbook, certificate of deposit, bank statement, used or unused checks, or
ATM card
➢ 1 valid original photo-bearing ID with clear signature of depositor/claimant (bringing 2 valid IDs is recommended in case of
discrepancies)
➢ For depositor below 18 years old, photocopy of birth certificate and valid ID of the parent
➢ Original copy of a notarized Special Power of Attorney (SPA) for claimants who are not signatories in the bank records (SPA
executed by the parent, if minor)
Who are not required to file deposit insurance claims?
Depositors with valid deposit accounts with balances of P100,000 and below are not required to file claims, provided they:
➢ have no obligations with the closed bank, or have not acted as co-makers of these obligations, or are not spouses of the
borrowers
➢ have complete mailing address found in the bank records or have updated their addresses through the Mailing Address
Update Form (MAUF) of PDIC before the start of the onsite claims settlement operation
➢ have not maintained the account under the name of business entities
What happens to uninsured deposit in excess of P500,000?
The claim for the uninsured portion of the deposit is a claim against the assets of the closed bank.

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University of Southern Philippines Foundation

Regulatory Framework for Business Transactions November 29, 2020

What specific points will be asked from this topic?

What is the relevant law on this topic?

What is the main function of the PDIC?

What are the specific functions of the PDIC?

What is an insured deposit?

How shall joint accounts be insured?

What types of deposits are insured by the PDIC?

Are deposits in foreign currency insured?

Yes, foreign currency deposits are insured.

Which accounts or deposits will not have deposit insurance?

What is the maximum liability of the PDIC for insured deposits?

Deposits in different banking institutions are insured separately.

What are the requirements for claiming the insurance?

The following are the requirements in filing claims:

Who are not required to file deposit insurance claims?

What happens to uninsured deposit in excess of P500,000?

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