Thursday, February 4, 2016

New check design standard in the Philippines

IMPORTANT ADVISORY ON CHECK CLEARING 
New check design standard in the Philippines

On January 4, 2016, checks with erasures, alterations, deficiencies, or missing details will no longer be accepted by banks in the Philippines, even if with countersignature (based on PCHC Memo Circular 15-460).

This is preparatory for the Check Image Clearing System (CICS), which will use digital check images instead of physical checks throughout the clearing cycle. New check design standards have also been issued by the Philippine Clearing House Corporation (PCHC) to complement this new system.

Meanwhile, checks in old and new designs are still honored by banks in the Philippines until further notice. Please anticipate succeeding advisories based on PCHC's updates to the banks.

New checks design standards: 

1.) Length of 8 inches for Personal and Commercial Checks.

2.) Box enclosure for Peso amount.

3.) A mandatory waiver that states "I/We allow the electronic clearing of this check and hereby waive the presentation for payment of this original to Bank of the Philippines Islands"

4.) Improved paper quality with new security features.

Post dated checks (PDCs) issued and /or received are subject to the guidelines on non-acceptance of checks with alterations and/or deficiencies. However, those under the BPI Check Warehousing Arrangement accepted by BPI before January 4, 2016 will not be affected.

For more information, please visit the bank near you or contact their hotline number. 

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