By Lawrence Agcaoili (The
Philippine Star) | Updated March 20, 2017 - 12:00am
BSP Deputy Governor
Nestor Espenilla Jr. issued Memorandum Order M – 2017-010 granting an additional
31 days for participant clearing banks of the Philippine Clearing House Corp.
(PCHC) to be fully compliant with the Check Image Clearing System (CICS). File
photo
MANILA, Philippines
- The Bangko Sentral ng Pilipinas (BSP)
has given big and small banks a one-month reprieve to fully comply with the
electronic processing of checks that kicked off last January.
BSP Deputy Governor
Nestor Espenilla Jr. issued Memorandum Order M – 2017-010 granting an
additional 31 days for participant clearing banks of the Philippine Clearing
House Corp. (PCHC) to be fully compliant with the Check Image Clearing System
(CICS).
Espenilla said the
Monetary Board issued Resolution No. 417 granting an additional 31 days for
PCHC clearing participant banks to fully comply with the CICS standard by April
21 this year.
Data obtained from the
website of the PCHC showed 68 big and small banks are CICS compliant as of
March 10. There are 613 universal and commercial, thrift as well as rural and
cooperative banks operating in the country.
The PCHC implemented the
clearing of checks via electronic presentment through its CICS last Jan. 20.
Under the CICS, only the
digital images of checks and their electronic payment information would be
transmitted to the paying bank, allowing a shorter turnaround time for funds to
be credited to the depositors’ accounts.
Depositors who transact
with CICS-compliant banks or branches may already withdraw on the next banking
day against their validated check deposits.
Meanwhile, banks that are
still on paper-based check processing would continue to render the service
under existing timelines.
To achieve faster
transition to the new process, the BSP has enjoined the remaining
non-CICS-compliant banks to take necessary measures to meet the technical
requirements of CICS.
The implementation of
CICS forms part of the reforms espoused by the BSP to achieve a more efficient
and safe payment system as this is critical to the promotion of the country’s
financial stability.
The BSP earlier urged
banks to remain prudent in implementing the new check clearing process, but at
the same time not too rigid in accepting checks.
The central bank upholds
consumer protection and promotes efficient payment system to maintain financial
stability.
PCHC issued Memo Circular
No. 3306 which states that checks that are folded or have staple holes should
be accepted by banks as long as the image and the information on the check are
still clearly visible upon unfolding or inspection.
Further, checks without
the word “only” after the amount written on the check, with empty spaces not
ruled out, or information not written in dark-colored ink should not be reasons
for non-acceptance by banks.
No standard format on the
date on the checks is required.
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