MANILA, Philippines – The Philippine Deposit Insurance Corporation (PDIC) has increased the amount of valid deposits of closed bank depositors eligible for outright payment of deposit insurance from P15,000 to P50,000.
Accounts with balance of P50,000 and below are now eligible for payment without the need to file deposit insurance claims in the event of a bank closure.
These accounts should have no outstanding obligations with the bank as of date of closure, and have complete and updated addresses in the bank’s records.
The PDIC said that 84.5 percent of the total number of accounts in a closed bank usually have balances of P50,000 and below.
Under the new policy, PDIC expects that only about 15 percent of a closed bank’s depositors will be required to file deposit insurance claims.
These are depositors who have account balances greater than P50,000 or have outstanding obligations with the closed bank, and those who do not have complete or updated addresses in the bank’s records as of date of closure.
PDIC said the increase will provide convenience to most of the depositors of closed banks because there will be no need to go to the site where PDIC conducts its field operations claims settlement (FOCS) to file claims.