PDIC pays out to depositors of closed community rural bank

CEBU, Philippines — The Philippine Deposit Insurance Corporation (PDIC) has started processing deposit insurance payouts to qualified depositors of closed Community Rural Bank of Medellin (Cebu), Inc.

Starting December 3, 2024, payouts are being facilitated through Postal Money Orders (PMOs) and Land Bank of the Philippines Visa Debit Cards (LVDC).

PDIC targets individual depositors and registered entities with deposit balances of P500,000 or less, provided they have no outstanding loans with the closed bank and their mailing addresses are updated in the bank’s records. The process eliminates the need for these depositors to file insurance claims, streamlining access to their insured funds.

For deposits of P5,000 and below Individual depositors and registered entities will receive payments via PMOs sent to their registered or updated mailing addresses.

PMOs can be encashed at local post offices or Land Bank branches. Payments for registered entities, however, must be deposited into their respective bank accounts.

For deposits above P5,000 and up to P500,000: Payments will be issued through LVDCs, with instructions included in the Payment Notices (PNs) sent to depositors’ mailing addresses.

On November 14, 2024 the Monetary Board (MB) of the Bangko Sentral Ng Pilipinas (BSP) prohibited Community Rural Bank of Medellin (Cebu), Inc. from doing business in the Philippines through MB Resolution No. 1287, which also directed PDIC, as Receiver, to proceed with the takeover and liquidation of the bank.