In a significant move towards enhancing financial services and inclusion, the Philippine Deposit Insurance Corporation (PDIC) and the Land Bank of the Philippines (LBP) have collaborated on the PDIC-LandBank Visa Debit Card Project. This joint initiative aims to provide depositors of closed banks with an additional, efficient means to access their deposit insurance payments promptly.
PDIC President and CEO Roberto B. Tan, along with LBP President and CEO Lynette V. Ortiz, marked a pivotal moment in this collaboration by signing the Implementing Rules and Regulations (IRR) and the Data Sharing Agreement on November 23, 2023, at the PDIC office in Makati City.
In a press release, PDIC said that under the project, eligible depositors covered by outright payment of deposit insurance, or those exempt from filing claims, will receive the LandBank Visa Debit Card issued by LBP. This includes individual depositors with valid balances of P100,000 and below, having no outstanding loans with the closed bank and maintaining complete and updated mailing addresses.
Not only does the PDIC-LBP Project streamline the process of accessing deposit insurance, but it also aligns with the government’s broader strategy to promote financial inclusion and optimize public service delivery through digital technology.
Moreover, this initiative supports the government’s goal of financial inclusion by enabling affected depositors to remain part of the financial system, ensuring their protection through the LandBank Visa Debit Card and an associated LBP account.
The collaboration between PDIC and LBP dates back to 2001, with a focus on ensuring the prompt reimbursement of deposit insurance payments. Over the years, this partnership has evolved to provide more secure and convenient payment options for depositors of closed banks.
As the state deposit insurer mandated to protect depositors, PDIC offers insurance coverage of up to P500,000 per depositor, per bank. In cases where banks are ordered closed by the Monetary Board of the Bangko Sentral ng Pilipinas, PDIC receivership ensures depositors are reimbursed up to the maximum coverage. (RVC/PIA-9)
