The Philippine Deposit Insurance Corporation (PDIC) has entered into a memorandum of agreement with the Land Bank of the Philippines (LBP) in a bid to help enhance payment operations for deposit insurance claims.

As part of the agreement, PDIC will roll out two new payment schemes to improve the servicing and payout of deposit insurance claims of depositors of closed banks.

The depositors will now be paid through LBP-issued Manager’s Check and by crediting to their current or newly-opened LBP accounts, thus increasing convenience and security.

New payment schemes can also be availed by small depositors having account balances of P15,000 and below, and requiring filing of deposit insurance claims, as they were not covered by the automatic payment through postal money order scheme.

LBP is designated as transferee bank under the transfer deposit scheme, and will pay a transferred deposit equal to the depositor’s insured deposit directly to the closed bank’s depositors.

The agreement also incorporates a wide range of existing payment schemes, including cash card and cash-over-the-counter that are implemented to settle depositors’ deposit insurance claims.

PDIC currently employs Cash cards and the Manager’s Check or cash-over-the-counter schemes to pay claims amounting to over P15,000.