What is PDIC

by Gily Tenorio on November 2, 2011

in Banking

Philippine Deposit Insurance Corporation or PDIC is a government-owned corporation the gives insurance to depositors on their deposits when the bank went to bankruptcy. The insurance coverage is up to P500,000 per depositor, which is the maximum insurance that you can get from your deposited money. So it is very important to limit the amount of money you put in a single bank especially for rural banks and small banks for they have higher tendency to go to bankruptcy than the well-established ones.

PDIC was established in June 22, 1963 as amended by Republic Act 3591. It is classified as a government instrumentality attached to the Department of Finance. Presently, its main office is located at 4th to 10th Floor SSS Bldg., 6782 Ayala Ave. corner V.A. Rufino St. (formerly Herrera Street), Makati City 1226 Philippines. If you are looking for its contact details, you can see the information below.

Telephone Nos. : (632) 841-4000
Fax Numbers : (632) 817-3566; (632) 894-5871
Website : www.pdic.gov.ph
Email Address : info@pdic.gov.ph


What are the Tasks of PDIC?

PDIC is a government-owned corporation (GOC) that is mandated to perform and carry out the following tasks: deposit insurer, co-regulator of banks and receiver and liquidator of closed banks.

1. Deposit Insurer

PDIC gives insurance to every depositors the money they put in the bank provided it is a member of PDIC otherwise your money is not insured from any loss like bankruptcy. It is very important for a bank account holder to know whether the bank they transact with is insured by PDIC. Always choose a bank that has insurance unless you want to lose all of your money. The maximum insurance per deposit account is up to Php 500,000 only, meaning you could only get a maximum 500,000 insurance even if your account balance is more than that amount.

2. Co-Regulator of Banks

Banks in the Philippines are regulated and oversee by Bangko Sentral ng Pilipinas (BSP) or Central Bank of the Philippines. Before a bank can operate and open its business to the public, it should satisfy and complete all the requirements set by BSP and other government agencies like PDIC and DTI.

3. Receiver and Liquidator of Closed Banks

In cases of closing banks due to bankruptcy, PDIC will manage and supervise the liquidation of insurance to depositors. They are the one that will issue insurance money for all deposit accounts of the closed bank.

As a bank account owner, it is very important to know and choose a bank that is a PDIC member or insured so your money can have a protection against bank closure or bankruptcy. Most of the banks in the Philippines are insured by PDIC but some rural banks have no insurance so you need to be aware of this for your own protection.

 

 

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