New bank check clearing rules that will regulate on same-day check clearing instead of three days will be implemented starting January 24. And the Bankers Association of the Philippines (BAP) is ready to comply with the central bank’s new regulation.
BAP has already ‘expressed support’ for the implementation of the BSP Circular No. 681 as amended recently by Circular No. 705, containing the new check clearing and settlement processes for all banks to follow. And has urged its member banks to initiate and focus their information campaign on their respective clients.
Starting January 24, all banks are mandated to return unfunded checks no later than 7:30 a.m. of the following banking day after checks are deposited or presented for clearing. The group issued the public reminders as per the BSP circular:
*A check, when issued, should have sufficient funds in the account otherwise it will be considered as ‘bounced’ and returned outright, subject to applicable penalties and handling charges.
*Stop Payment Order (SPO) will not be entertained or considered unless the instruction is placed or relayed on or before the day of the deposit or presentation of the check/s subject by an SPO.
Early this month the BSP released its revised regulation on same-day check clearing and settlement process, deferring its implementation by a month for the integrated Greater Manila local exchanges (LX) and by seven months for settlements tagged as regional local exchanges (RLX).
BSP Governor Amando M. Tetangco Jr. signed the revised regulation last December 29 as Circular No. 705, which amended Circular No. 681 the ‘Revised Check Clearing and Settlement Processes’ issued last February 8. In the original circular, same-day check clearing was supposed to be implemented beginning January 1.
The new BSP mandate is expected to oblige bank account holders to manage their checking accounts properly and to a large extent discourage the issuance of checks not sufficiently funded or not funded at all. To avoid penalties, it is always good to exercise prudence when writing checks.