Manila, Feb. 28 -- The Philippine Deposit Insurance Corp. (PDIC) will double the maximum deposit insurance coverage (MDIC) for bank deposits.

In its Memorandum 2025-01 released on Friday, the PDIC said the MDIC would be increased to PHP1 million per depositor per bank from the current PHP500,000.

The higher MDIC will take effect on March 15.

"The increase in the MDIC was approved by the PDIC Board of Directors to provide enhanced protection and more confidence for the depositing public," the PDIC said in a separate statement.

Deposit insurance is a government policy and a financial safety net to protect depositors and help promote financial stability.

Depositors do not pay for deposit insurance.

The PDIC said Republic Act 3591, as a...