Electronic clearing of checks to start January 2017 – BSP
MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) announced it will begin electronic clearing of checks on January 20, 2017.
The central bank issued Memorandum No. 2016-012 on Wednesday, September 14, informing banks about the adoption of the clearing of checks via electronic presentment as approved by the BSP's Monetary Board.
The new check clearing process is expected to speed up the crediting of funds to depositors' accounts from the current 3 to 5 banking days to only one banking day, the central bank said in a statement.
The BSP tapped the Philippine Clearing House Corporation (PCHC) as the exclusive provider of electronic check clearing services, with the implementation through its Check Image Clearing System (CICS).
Under the CICS, no physical delivery of checks will be needed as the system only requires the digital images of checks and their electronic payment information to be transmitted to the paying bank.
Aside from promoting financial consumer welfare, the reform also enhances the efficiency of the domestic payment system and promotes the faster movement of goods and services in the country, the BSP said.
The central bank added that it will also take a more active role in supervising the country's check clearing system by reviewing PCHC regulations as well as examining PCHC arrangements, processes, and systems for check clearing.
Data showed the PCHC processes about 700,000 checks daily with an average value of P135 billion ($2.84 billion).
The BSP has been actively promoting the use of electronic payments. BSP Governor Amando Tetangco Jr pointed out that while electronic payments in the country accounted for only 1% last year, the BSP wants to increase that figure to 20% over the next 5 years with the rollout of the National Retail Payment System (NRPS).
If all the local checks cleared in 2013 were e-payments instead, the industry could have saved $272 million or about 8.5% of the net income after tax of all banks operating in the Philippines, Tetangco noted. – Rappler.com
$1 = P47.5