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
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
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
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
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
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
For further questions, please contact any branch or
your respective Relationship Manager or Account Officer. You can also
email us at
Print Customer Contact
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