Please be informed of the ongoing transition to the Check Image Clearing System (CICS) (formerly referred to as the Check Truncation System or CTS) that will affect the check clearing process in the Philippines upon full implementation. This will make use of check images rather than physical checks throughout the check clearing cycle.
New check design standards are required, as issued by the Philippine Clearing House Corporation (PCHC). All newly produced checks now apply the following:
1. Length of eight inches for Commercial Checks and Personal Checks
2. Peso amount to be emphasized via box enclosure vs. underline.
3. A 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 Philippine Islands”
4. Improved paper quality with embedded security features.
Non-acceptance of checks with erasures, alterations, or deficiencies will be fully implemented by all banks on January 4, 2016, based on PCHC Memo Circular 15-460. In preparation, clients are strongly urged to refrain from issuing checks with alterations effective immediately.
On Post Dated Checks (PDCs), kindly note the following:
- Post dated checks that you have issued and/or received are also subject to the guidelines on non-acceptance of checks with alterations, erasures and deficiencies cited above.
- Checks under the BPI Check Warehousing Arrangement accepted by BPI before January 4, 2016 will be exempted from the guidelines on alterations, erasures and deficiencies.
Please anticipate succeeding advisories following PCHC’s updates to the banks. Meanwhile, checks in old and new design are still honored by BPI until further notice.
Watch this video to learn more about the upcoming transition to the Check Image Clearing System.