CUSTOMER UPDATE: Important Advisory on Check Clearing


I. Advisory on Check Clearing and Settlement Processes

We would like to inform you of the upcoming changes related to check clearing processes arising from Bangko Sentral ng Pilipinas (BSP) Circular No. 681.

BSP has issued Circular No. 681 or the “Revised Check Clearing and Settlement Processes,” which will take effect on 01 January 2011. The circular requires that banks should return DAUD (Drawn Against Uncleared Deposit) and DAIF (Drawn Against Insufficient Funds) checks to the Philippine Clearing House Corporation (PCHC) by 7:30am the next day (following the day when a check is presented for clearing).

Presently, while you have to ensure that your checks are funded prior to issuance, you have a window to do late funding. Although the checks are honored, late funding falls under what is called a “temporary overdraft” (TOD) condition which entails TOD fees amounting to Php 1,000 plus Php 200 for every Php 40,000 fraction of the check you issued.

Under BSP’s new clearing process by 2011, banks will be unable to accommodate next banking day funding of checks Therefore, any unfunded checks will automatically be returned, where corresponding charges of Php 2,000 plus Php 200 for every Php 40,000 fraction of the check are applied per day.

In this regard, we highly encourage the exercise of prudence in managing your checking account/s to avoid any inconvenience and penalties.


Check Protect: A New Solution to Help you Manage your Checking Account

In line with the new Check Clearing Process, BPI makes it easy for you to fund your checks with
its new Check Protect solution. You can automatically fund your checks either through your BPI Savings or Checking Account* or your BPI Credit Card.

  • Free yourself from worries on unfunded or returned checks by nominating a BPI Savings or Checking Account or even your BPI Credit Card to fund your checks.

  • Avoid inconveniences and penalties charged on returned checks.

  • Enroll your checking account in Check Protect for FREE.

You can now sign-up for Check Protect at any branch. Talk to any branch personnel for enrollment details.


II. Question and Answer

Here’s a quick guide to make it easy for you to further understand the changes and implications on your Checking Accounts brought about by BSP Circular 681.

Question 1: If I am a checking accountholder, how will the revised clearing process (BSP Circular 681) affect me?

At present, unfunded checks are not automatically considered as returned or bounced checks if you are able to fund them within the bank’s cut-off period.

Under the revised clearing process, you will have no window to fund checks under Temporary Overdraft condition since all unfunded checks will be returned by 7:30AM, as required by BSP. Any unfunded check will be considered as returned or bounced checks. Furthermore, you will be charged a returned check fee of Php 2,000 plus Php 200 for every Php 40,000 fraction of the check amount per day. We therefore encourage the exercise of prudence in managing your checking account/s to avoid inconvenience and penalties.

Question 2: My accounts are enrolled in BPI Express Online, Express Phone or Express Mobile (or BPI ExpressLink for Corporate Accounts). What is the cut-off time for funding a check through electronic funds transfer?

Since BPI checks deposited to a BPI account clear real-time, your electronic funds transfer should be made BEFORE your payee deposits your check in BPI (the same is true for BFSB checks deposited to BFSB and BPID Savings Bank checks deposited to BPID Savings Bank).*

For BPI, BFSB or BPID checks deposited in other banks, you can still fund your issued checks via electronic funds transfer until 10:00 PM, within the same day as that of your payee's check deposit.

Question 3: What happens to checks which are subject to Stop Payment Orders (SPOs)?

For an SPO instruction to be honored by the Bank, the SPO should be issued EARLIER than the date indicated on the check.

If an SPO instruction is made on or beyond the date indicated on the check, it will only be effective if the check has not yet been deposited by your payee for clearing.

Question 4: If I am a payee (or the one who was issued a check), how will the revised clearing process affect me?

There will be no effect on the clearing period or when the funds will be available to the payee. Depending on the type of check you deposit, the following clearing period still applies:

Type of check
When are the funds available?
On-us checks (BPI Checks)**
Instant, same-day clearing
Other local banks’ checks
3 banking days
Regional checks
5-7 banking days
* BPI Family Savings Bank (BFSB), BPI Direct Savings Bank (BPID)
** Applies to BPI checks deposited to BPI accounts, BFSB checks deposited to BFSB accounts and BPID checks deposited to BPID accounts

Question 5: What options do I have to further protect me from returned checks?

We have internet, phone and mobile services that enable you to monitor your balances and do funds transfers and bills payments conveniently. This way you lessen the need to issue checks. Enroll in BPI Express Online, BPI Express Phone or BPI Express Mobile to start enjoying the benefits of 24/7 banking. For more information on how to enroll in these facilities, please visit www.bpiexpressonline.com. For Business and Corporate clients, you can visit www.bpiexpresslink.com to find out how you can take advantage of online banking for your businesses.

Question 6: How can the new Check Protect solution help me avoid returned checks?

Check Protect allows you to choose funding account/s for the checking account you wish to be funded. This way, you can enjoy worry-free management of your checking account/s as your nominated funding account will automatically cover for the insufficient balance.
You may select from the following funding account options:

o BPI Savings or Checking Account* or
o BPI Credit Card

*If the Checking Account you wish to be funded is BPI, the funding account/s should also be a BPI account. Should the Checking Account to be funded be BPI Family Savings Bank, the funding account should be BPI Family Savings Bank Account. The same applies to BPI Direct Checking Account (to be funded) and its funding account.

To enroll in Check Protect, visit any branch and our branch personnel will be more than happy to assist you.
Please also expect further updates and watch out for more ways to Check Protect you.

We would like to keep you posted on further developments regarding BSP Circular 681. Please provide us with your updated contact information. Kindly fill-out the Customer Contact Update Form enclosed and give this to any branch, or to your respective Relationship Manager or Account Officer.


For further questions, please contact any branch or your respective Relationship Manager or Account Officer. You can also email us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .




Print Customer Contact Update Form


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