The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) prohibited Rural Bank of San Agustin (Isabela), Inc. from doing business in the Philippines through MB Resolution No. 3.A dated January 5, 2023 which also directed the Philippine Deposit Insurance Corporation (PDIC), as Receiver, to proceed with the takeover and liquidation of the bank.
The PDIC took over the bank on January 6, 2023.
Rural Bank of San Agustin (Isabela), Inc. is a two-unit rural bank with Head Office located at RB Building, Vallejo St., Barangay I (Pob.), Jones, Isabela. Its lone branch is located in San Agustin, Isabela. Latest available records show that as of March 31, 2022, Rural Bank of San Agustin (Isabela), Inc. has 6,283 deposit accounts with total deposit liabilities of P339.4 million, of which 68.8% or P233.5 million are insured deposits.
The PDIC assured depositors that all valid deposits and claims will be paid up to the maximum deposit insurance coverage of P500,000.00 per depositor.
Individual account holders of valid deposits with balances of P100,000.00 and below, who have no outstanding obligations or have not acted as co-makers of obligations with Rural Bank of San Agustin (Isabela), Inc. are not required to file deposit insurance claims. These individual depositors must ensure that they have complete and updated addresses with the bank. Depositors may update their addresses by submitting a Mailing Address Update Form (MAUF) until January 19, 2023 either through the drop box available at the bank premises, or by sending a scanned copy of said form and valid ID to this email address: email@example.com. MAUF will be made available at the bank premises or may be downloaded from the PDIC website at www.pdic.gov.ph. Insurance payments for valid deposits with balances of P100,000.00 and below will be made through postal money order and targeted to be sent via mail starting on February 1, 2023.
For business entities and all other depositors, filing of claims for insured deposit is targeted to start by February 9, 2023. Borrowers are likewise reminded to continue paying their loan obligations with the closed Rural Bank of San Agustin (Isabela), Inc. and to transact only with designated PDIC representatives.
For more information on the requirements and procedures for filing deposit insurance claims and settlement of loan obligations, depositors and borrowers of the bank are enjoined to attend the Depositors-Borrowers’ Forum scheduled on January 30 and 31, 2023. Details of the Forum i.e., time and venue, will be announced later.
As provided for by the PDIC Charter, the PDIC shall likewise accept Letters of Intent from interested banks and non-bank institutions for possible purchase of assets and assumption of liabilities (P&A) as a mode of liquidating Rural Bank of San Agustin (Isabela), Inc. Letters of intent should be submitted within 60 days from takeover date subject to compliance with the requirements prescribed under the Guidelines in Pre-qualifying Proponents and Evaluating the Proposals for Purchase of Assets and Assumption of Liabilities Mode of Liquidating Closed Banks which can be accessed in the PDIC website.
To ensure the safety of all concerned and observance of health protocols, all clients of the bank may communicate with PDIC through any of the following modes: Public Assistance Hotline during office hours at (02) 8841-4141, Toll-Free Hotline at 1-800-1-888-PDIC (7342) during office hours for those outside Metro Manila, e-mail to firstname.lastname@example.org or Facebook private message. For visits to the PDIC Public Assistance Center, clients are highly encouraged to request for an appointment, observe health protocols and present their vaccination cards. Appointment schedule may be secured through telephone, e-mail or Facebook private message.