OFFICIALS of the Philippine Deposit Insurance Corp. and the Development Bank of the Philippines (DBP) recently signed a memorandum of agreement (MOA) for a multi-channel disbursement facility (MCDF) as “a secure and convenient means to pay deposit insurance to depositors of closed banks,” according to the PDIC.
According to the PDIC statement, the MOA will enable the state deposit insurer to avail of DBP’s MCDF for the prompt payment of deposit insurance claims of closed bank depositors.
Under the agreement, the state deposit insurer may avail of the MCDF as an additional deposit insurance claims payment option. The MCDF provides a number of payment avenues for the convenience and safety of affected depositors. This includes Intrabank Credit Services and payment through the PESONet composed of participating banks and e-money issuers.
“This most recent collaboration of PDIC and DBP assures closed bank depositors of more convenience given PESONet’s wide range of affiliated financial institutions,” the PDIC statement read.
The MCDF will complement the current PDIC payment channels such as postal money orders, checks, cash-over-the-counter scheme with the Land Bank of the Philippines and real time gross settlement (RTGS) and/or bank transfer.
The statement said the agreement was signed by PDIC President and CEO Roberto B. Tan and DBP President and CEO Emmanuel G. Herbosa through a virtual ceremonial signing on December 29, 2021.
“The PDIC is constantly innovating to optimize technology and collaboration to improve its services for the depositing public,” Tan was quoted in the statement as saying. “This partnership with the DBP is a step towards that direction.”
The PDIC President added they “recognize the importance of interconnectedness of financial institutions in the country and we trust that this facility for deposit insurance payments will provide convenience and better accessibility for depositors of closed banks.”
The state deposit insurer assured the public that transactions under the MCDF are safe, secure and fully compliant with the “know-your-client,” or KYC, procedures of the Bangko Sentral ng Pilipinas (BSP), the Data Privacy Act and Anti-Money Laundering laws and regulations.
The PDIC is the government instrumentality mandated to protect the depositing public and promote financial stability through deposit insurance of up to P500,000 per depositor per bank. Deposit insurance is a safety net and is paid by PDIC to depositors of banks ordered closed by the Monetary Board of the BSP.