PHILIPPINE DEPOSIT INSURANCE CORPORATION ACT (R.A. No.

3591, as amended, as further

amended by R.A. No. 10846)

Composition of Board of Directors

1. Secretary of Finance, ex-officio Chairman of the Board without compensation;
2. Governor of the BSP, ex officio of the Board without compensation;
3. President of PDIC, who shall be appointed by the President of the Philippines to serve on full-time basis
for a term of six (6) years. He shall also be the Vice Chairman of the Board;
4. Four (4) members from the private sector, to be appointed by the President of the Philippines for a term
of six (6) years without reappointment.

Main Functions of the PDIC

1. Deposit Insurer
2. Co-regulator of Banks
3. Receiver and Liquidator of Closed Banks

Specific Functions
1. Bank examination
2. Liquidation of closed banks
3. Insurance
4. Assessment
5. Bank rehabilitation
6. Receivership of closed banks

Powers of PDIC as Corporate Body

1. To adopt and use a corporate seal
2. To have succession until dissolved by an Act of Congress
3. To make contracts
4. To sue and be sued, complain and defend, in any court of law in the Philippines
5. To appoint by its Board of Directors, officers and employees, to define their duties, fix their
compensation, require bonds of them and fix penalty thereof and to dismiss such officers and employees
for cause
6. To prescribe, by its Board of Directors, by-laws not inconsistent with law, regulating the manner in
which its general business may be conducted, and the privileges granted to it by law may be exercised
and enjoyed
7. To exercise by its Board of Directors, or duly authorized officers or agents, all powers specifically
granted by the provisions of this Act, and such incidental powers as shall be necessary to carry on the
powers so granted
8. To conduct examination of banks with prior approval of the Monetary Board
9. To act as receiver
10. To prescribe by its Board of Directors such rules and regulations as it may deem necessary to carry out
the provisions of R.A. 3591, as amended

Insurance
1. 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
P500,000.00.
2. Compulsory insurance on all bank deposits.
*Deposits- the unpaid balance of money or its equivalent received by a bank in the usual course of
business, for which it is obliged to give credit to a commercial, checking, savings, time or thrift account,
or issued in accordance with the BSP rules and regulations and other applicable laws, together with such
other obligations of a bank.
3. All banks shall indicate the coverage of the PDIC in each passbook, certificate of time deposit and/or
cover of checkbook for demand deposit/NOW accounts stating the maximum amount of insurance.
4. The net amount to any depositor for deposits in an insured bank, after deducting any offsets, should not
exceed P500,000.
5. If the depositor has 2 or more accounts with the same bank, the maximum coverage pertains to the
sum of all such accounts maintained in the same right and capacity.
6. A joint account shall be insured separately from any individually-owned deposit account.
7. A depositor with single accounts and joint accounts may have insured deposits of up to P1,000,000.
8. Foreign currency deposits are also insured by PDIC. Depositors may receive payment in the same
currency in which the insured deposit is denominated.

Exclusions
1. Investment products such as bonds and securities trust accounts, and other similar instruments which
do not fall under the definition of a deposit;
2. Deposit accounts or transactions which are unfunded, or are fictitious or fraudulent;
3. Deposit accounts or transactions constituting, and/or emanating from, unsafe and/or unsound banking
practice/s, as determined by the PDIC;
4. Deposits that are determined to be the proceeds of an unlawful activity.

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Payment of Insured Deposits
1. PDIC may require proof of claims to be filed before paying the insured deposits; and
2. In any case, where it is not satisfied as to the viability of a claim for an insured deposit, it may require
final determination of a court of competent jurisdiction before paying such claim.

Depositors who are required to file deposit insurance claims:

1. With valid deposit accounts with balances of more than P100,000;
2. With outstanding obligations with the closed bank either as borrower, co-maker, or as spouse of
borrower;
3. With incomplete mailing address found in the bank records, or failed to update them through the MAUF
issued by the PDIC;
4. With accounts maintained under the name of business entities;
5. With accounts not eligible for early payment, regardless of type of account and account balance per
advice of PDIC; and
6. Who are deceased whose filing of claim is thru the legal heirs.
*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 and have complete and updated addresses in the bank
records or have updated these through the Mailing Address Update Form (MAUF) issued by the PDIC.

Requirements in filing claims:

1. ORIGINAL EVIDENCE OF DEPOSITS such as savings passbook, certificate of time deposit, bank
statement, used or unused checks, or ATM card;
2. ONE (1) VALID ORIGINAL PHOTO-BEARING IDENTIFICATION DOCUMENT (ID) with clear signature of
depositor/claimant (e.g. Driver’s License, SSS/GSIS ID, Senior Citizen’s ID, Passport, PRC ID,
OWWA/OFW ID, Seaman’s ID, Alien Certificate of Registration ID, Voter’s ID). (IT IS RECOMMENDED TO
BRING AT LEAST TWO (2) VALID IDs IN CASE OF DISCREPANCIES IN SIGNATURE);
3. For depositors below eighteen (18) years old, photocopy of birth certificate from the Philippine Statistics
Authority (PSA) or a duly certified copy issued by the local civil registrar, and valid ID of the parent;
4. Original copy of a notarized Special Power of Attorney (SPA) for claimants who are not the signatories in
the bank records. In the case of minor depositor, the SPA must be executed by the parent. (please click
to download the sample Form of SPA); and
5. Claim Form to be signed by:
 Depositor of the account for depositor 18 years old and above;
 Parent for depositor below 18 years old;
 Agent in the case of “by” account;
 Trustee in the case of “In Trust For (ITF)” account;
 Each depositor/account holder for account maintained as “Or”, “And/Or” or “And” in case of joint
accounts; and
 Authorized representative/s for business entities, deceased depositors and person who has
Special Power of Attorney (SPA) form the depositor.

Rules:
1. PDIC liability is on a per bank basis. Accounts in a bank, even though in several branches, are to be
added together, provided that they are maintained in the same capacity and the same right for his
benefit either in his own name or in the name of others;
2. The insurance premiums are to be paid by the insured bank, not the depositors;
3. In case the depositor’s account is more than the insurance coverage, the balance may still be recovered
from the PDIC after the final liquidation of the remaining assets of the closed bank;
4. A joint account regardless of whether the conjunction “and”, “or”, “and/or” is used, shall be insured
separately from any individual-owned deposit account;
 If the account is held jointly by two or more natural persons, or by two or more juridical persons
or entities, the maximum insured deposit shall be divided into as may equal shares as there are
individuals, juridical persons or entities, unless a different sharing is stipulated in the document
of deposit;
 If the account is held by a juridical person or entity jointly with one or more natural persons, the
maximum insured deposit shall be presumed to belong entirely to such person or entity; provide,
further, that the aggregate of the individuals, juridical persons or entities, shall likewise be
subject to the maximum insured deposit of P500,000; and
 No owner/holder of any negotiable certificate of deposit shall be recognized as a depositor
entitled to the rights provided unless his name is registered as owner/holder thereof in the books
of the issuing bank.
5. The depositor of the closed insured bank has 2 years from date of bank takeover to file his deposit
insurance claim.
6. The payment by the PDIC to the depositor of his insured deposit discharges the PDIC from further
liability and subrogates the PDIC to all the rights of the depositor against the closed bank to the extent
of such payment.
7. PDIC covers only the risk of a bank closure ordered by the Monetary Board. Thus, bank losses due to
theft, fire, closure by reason of strike or existence of public disorder, revolution or civil war, are not
covered by PDIC.
8. Foreign currency deposits are also insured by PDIC pursuant to RA 6426 (“An act instituting a foreign
currency deposit system in the Philippines, and for other purposes”) and Central Bank (CB) Circular No.

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 1389. Depositors may receive payment in the same currency in which the insured deposit is
denominated.

Drills:
1. All deposits of any bank are insured with the:
A. BSP C. PDIC
B. Insurance Commission D. Monetary Board
2. Insured deposit means the net amount due to any depositor for deposits in an insured bank but should not
exceed:
A. P1,000,000 C. P250,000
B. P500,000 D. P300,000
3. Under the PDIC law, a joint account held by a juridical person or entity jointly with a natural person shall be
presumed to belong to the:
A. Juridical Person C. Both the juridical and natural persons
B. Natural Person D. One who first files the claim
4. The proceeds of the insurance shall be paid by the PDIC to the depositor whenever:
A. The depositor files the claim with supporting documents
B. The insured bank submits the list of qualified depositors
C. The insured bank is closed on account of insolvency
D. The order from the BSP to pay is issued
5. The claim must be filed within how many years from the actual takeover by the receiver?
A. 5 B. 3 C. 2 D. 1
6. The following are the three main functions of PDIC, except:
A. Deposit insurer
B. Receiver/liquidator of distressed banks
C. Loan functions
D. Co-regulator of the BSP over banking institutions
7. An employee of a large manufacturing firm earns a salary which is just a bit more than what he needs for a
comfortable living. He is thus able to still maintain a P10,000 savings account, a P20,000 checking account,
a P30,000 money market placement, and a P40,000 trust fund in a medium-sized commercial bank. Which
of the accounts are not deemed insured by the PDIC:
A. The P10,000 money market placement and the P20,000 trust fund
B. The P30,000 savings account and the P40,000 checking account
C. The P10,000 savings account and the P30,000 money market placement
D. The P20,000 savings account and the P40,000 trust fund
8. X is a depositor for AAA Bank. She has three (3) deposit accounts all under her name. One, in checking
account, one in saving account and another one in time deposit account. Each account has a balance of
P250,000. AAA Bank became insolvent. Philippine Deposit Insurance Corporation closed the Bank. X
therefore is unable to withdraw from all of the accounts. She then filed her claims with the Philippine deposit
Insurance Corporation. Which statement is most accurate?
A. X can claim a total a total of P500,000 for all the three (3) accounts
B. X can only claim from (1) account of P250,000
C. X can claim a total of P750,000 from all the three (30) accounts
D. X cannot claim anything from any deposit accounts
9. 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 the date of closure, but not exceed Five Hundred thousand Pesos
(P500,000).
A. Deposit
B. Insured Deposit
C. Transfer Deposit
D. Trust Funds
10. Statement No.1: A joint account shall be insured separately from any individually-owned deposit account.
Statement No.2: Membership of banks to PDIC is mandatory; hence, all operating banks are members of
PDIC.
A. First is false, second is true
B. Second is false, First is true
C. Both are false
D. Both are true
11. The PDIC shall not pay deposit insurance for the following accounts or transactions, except for:
A. Deposit accounts which are unfunded, fictitious or fraudulent
B. Deposit products constituting or emanating from unsafe and unsound banking practices
C. Deposit accounts that resulted from splitting of deposits
D. Foreign currency deposits
12. What is PDIC’s maximum deposit insurance coverage?
A. P150,000
B. 1,000,000
C. 500,000
D. 250,000
13. This occurs whenever a deposit account with an outstanding balance of more than the statutory maximum
amount of insured deposit maintained under the name of persons is broken down and transferred to two or
more accounts in the name of persons or entities who have no beneficial ownership on transferred deposits
in their names within 120 days immediately preceding or during a bank-declared bank holiday, or

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 immediately preceding a closure order issued by the Monetary Board for the purpose of availing of the
maximum deposit insurance coverage.
A. Inter-Branch deposits
B. Transfer deposits
C. Splitting of deposits
D. Insured deposits
14. This means the unpaid balance of money or its equivalent received by a bank in the usual course of
business and for which is has given or is obliged to give credit to a commercial, checking, savings, time or
thrift account.
A. Insured deposit
B. Deposit
C. Transfer deposit
D. Trust Fund
15. This refers to the possibility that failure of one bank to settle net transactions with other banks will trigger a
chain reaction, depriving other banks of funds leading t0 a general shutdown of normal clearing and
settlement activity.
A. Assumption of risk
B. Systematic risk
C. Clearing risk
D. Transaction risk
16. The following are the powers of the PDIC, except for:
A. Power of examination of banks
B. Power to secure corrective action from the Monetary Board
C. Power to underwrite and advance cost of litigation
D. Power to exercise the taxation and eminent domain
17. Statement No.1: The PDIC is exempted from income tax, final withholding tax, value-added tax on
assessments collected from member banks, and local taxes.
Statement No.2: For purposes of meeting its insurance purposes and its financial assistance functions, PDIC
is authorized to borrow from BSP.
A. Both are true
B. Both are false
C. First is true, second is false
D. Second is true, first is false
18. PDIC covers only
A. The risk of a bank closure ordered by the Monetary Board
B. Bank losses due to theft, fire, fortuitous events, force majeure
C. Closure by reason of strike or existence of public disorders revolution or civil war
D. Closure due to COVID-19
19. Statement No.1: Deposit insurance coverage is not determined on a per-account basis.
Statement No.2: Deposits in different banking institutions are insured separately.
A. Both are true
B. Both are false
C. Firs is true, second is false
D. Second is true, first is false
20. The depositor of the closed insured bank has ____ months from date of bank takeover to file his deposit
insurance claim.
A. 6
B. 12
C. 24
D. 36
21. What happens when the depositor of a closed bank fails to file his claim with 24-month period.
A. All rights of depositor with respect to insured deposit shall be honored only after successfully filing for an
extension within 6 months from the lapse of the 24-month period claim against the assets of closed
bank.
B. All rights of depositor with respect to insured deposit shall no longer be honored, but he may still make
a claim against the assets of closed bank.
C. All rights of depositor with respect to insured deposit shall no longer be honored and he shall be barred
from making a claim against the assets of closed bank.
D. All rights of depositor with respect to insured deposit shall still be honored. But he may only make a
claim against the assets of closed bank.
22. The following are required to file deposit insurance claims, except:
A. Depositors who have outstanding obligations with the closed bank regardless of amount of depositors
B. Depositors with account balances of less than P100,000 who have no updated addresses in the bank
records who have not updated their addresses through the Mailing Address Updated Form (MAUF) issued
by the PDIC
C. Depositors who maintain their accounts under the name of business entities, regardless of type of
account and account balance.
D. Answer not given
23. Statement No.1: Money market placements are not covered by deposit insurance.
Statement No.2: The liability of PDIC for insured deposits rests upon the existence of deposits with insured
bank, not on the negotiability or non-negotiability of the certificates evidence these deposits.
A. First is true, second is false

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 B. Second is true, first is false
C. Both are false
D. Both ae true
24. This is the stage within which the PDIC managers the affairs of the closed bank and preserves its assets for
the benefit of creditors:
A. Receivership
B. Liquidation
C. Examination
D. Rehabilitation
25. This refers to the recovery and conversion of assets into cash for distribution to all creditors in accordance
with the order of creditor preference pursuant to law:
A. Receivership
B. Liquidation
C. Examination
D. Rehabilitation
26. This following are powers of the PDIC as a corporate body, except:
A. To adopt and use a corporate seal
B. To have a succession
C. To make contracts
D. To issue the national currency

---nothing follows---

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