Feedback Corner

Publications and Research

Media Releases

New Check Clearing Procedures


The Bangko Sentral ng Pilipinas (BSP) in cooperation with the Philippine Clearing House Corporation (PCHC) conducted a forum on the new guidelines on the check clearing processes on 10 August 2010 at the BSP Assembly Hall. Some 130 representatives of clearing-participant banks were in attendance. 

The new procedures covered by BSP Circular 681 dated 08 February 2010 will take effect in January 2011 and will have the following salient points:    

1. Checks dishonored due to insufficient funds or credits or with stop- payment order shall be returned to the PCHC not later than 7:30AM of the next clearing day. Hence, the return window is shortened by 9 hours.

2. Demand Deposit Account balances of banks with the BSP are final before 9:00AM of the next clearing day

3. Banks with current rediscounting line are entitled to a clean Overdraft Credit Line equivalent to 15% of the approved rediscounting line.

4. Banks not meeting established criteria, namely: CAMELS of not less than “3”; CAR of not less than 10% and with no chronic deficiency in legal reserve; as well as other measures as may be defined by BSP for the purpose, shall put up a collateralized Overdraft Credit Line with the BSP; otherwise, their outward clearing items shall be subject to second day value dating.

BSP Deputy Governor Diwa C. Guinigundo emphasized that the changes in the check clearing procedures were approved by the Monetary Board after a series of consultations with the banker associations and industry representatives.  He requested the banks to start advising their clients of the effectivity in January 2011 of the new procedures. Banks were also asked to remind their clients that checks should only be issued if they are supported by sufficient funds on the day of issuance.  Deputy Governor Guinigundo assured the banks that BSP will also conduct public awareness campaigns starting next month. 

SP advised that its Department of Loans and Credit is now ready to accept applications for Overdraft Credit Line from concerned banks.

RSS Subscribe for updates