Metrobank is Changing Check Processing as Mandated by Bangko Sentral ng Pilipinas (BSP)

By on Jan 11, 2011 in Banking, Business Comments

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Manila, Philippines –  Metrobank had informed all its customers via e-mail notification about the revision of checking account procedures. A copy of information is shown below for public’s reference. The changes shall take effect on January 24, 2011 as mandated by Bangko Sentral ng Pilipinas (BSP) Circular 681 and 705.

(BSP CIRCULAR 681 and 705)

Dear Valued Client,

Please be advised that your bank will soon be implementing changes in check processing as mandated by Bangko Sentral ng Pilipinas (BSP) Circular 681 and 705 effective January 24, 2011.

Here are some of the important reminders and frequently asked questions about BSP Circular 681 and 705:

1. What is BSP Circular Nos. 681 and 705 all about?

BSP Circular Nos. 681 and 705 or the “Revised Check Clearing and Settlement Processes” require all banks to return unfunded checks not later than 7:30 AM on the following banking day after checks are deposited/presented for clearing.

2. When is the implementation date for BSP Circular Nos. 681 and 705?

BSP Circulars will take effect on January 24, 2011. For areas covered by Regional Local Exchanges (RLX), this will be implemented on July 01, 2011.

3. How will BSP Circular Nos. 681 and 705 affect my/our Checking Account?

Upon effectivity, checks with insufficient balance (i.e., DAIF, DAUD), checks with Stop Payment Order (SPO) (i.e., SPO-Funded, SPO-DAIF, SPO-DAUD) and other regular return items (i.e., Closed Account, Non-existent Account) shall be automatically returned not later than 7:30 AM on the following day (Day 2). This means that current account holders will no longer have the chance to fund checks with insufficient balance on Day 2.

4. Is there an additional charge if I/we issued unfunded checks?

Yes. You will be charged a service fee of Php2,000 plus a returned check fee of Php200 for every Php40,000 or fraction thereof of the check amount per day.

5. Is there any other way to fund my/our checking account/s if I/we failed to deposit over-the-counter?

Yes, you can still fund your issued checks via electronic fund transfer (i.e., Metrobankdirect, Metrophone, Mobile Banking, ATM) until 11:00 PM on the same date that your payee deposited/presented the check to the Bank.

6. What will I/we do to avail of the electronic fund transfer?

You may enroll your accounts (source and target accounts) in any of Metrobank’s electronic channels through your depository branch. Once enrolled, you can monitor your balances on-line, pay your bills and lessen the need to issue checks.  Enrollment is free of charge.

7. Can I/we still apply for Stop Payment Orders (SPOs)?

Yes. Your depository branch will accept your stop payment request if subject check/s has/have not yet been accepted/negotiated, encashed and charged to your account.

8. How should I/we prepare for the implementation of BSP Circular Nos. 681 and 705?

We encourage you to monitor your checking accounts and ensure that all issued checks are sufficiently funded on the date of issuance, to avoid penalties.

9. Will the “Revised Check Clearing and Settlement Process” shorten the clearing period for check/s which I/we deposited to my/our account?

No, there is no change in the existing clearing period for checks.

We strongly encourage you to prepare for these changes in order to avoid any inconvenience once the circular becomes effective.  If you have questions or require further clarification, feel free to contact your branch of account.  You may also reach our Customer Care hotlines through any of the following:

Hotline              : (632) 898-8701; (632) 898-8702
E-mail               : [email protected].

Customers are encouraged to contact Metrobank for any other information they may need.

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