One-day check clearing starts in January

The implementation of the electronic clearing of checks by the Bangko Sentral ng Pilipinas (BSP) wherein checks would be cleared within one day from the current three days is on track.

BSP assistant governor Johnny Noe Ravalo said the electronic clearing of checks would help sustain the country’s growing economy.

The country’s gross domestic product (GDP) has posted positive growth for the past 70 quarters.

“The amount of money will now be available the next banking day. It will aid in economic activity,” Ravalo said.

Emmanuel Barcena, president and CEO of the Philippine Clearing House Corp. (PCHC), told reporters banks are doing their best to meet the January transition date.

“Banks will do their best to meet the deadline,” he added.

According to him, a total of 76 banks joined the simulation run last Oct. 21 wherein 1.4 million checks were processed.

Barcena said another simulation run would be conducted on Nov. 11 as banks continue to fix their systems.

“We had a simulation run, it was a success. Some banks are trying to fix their system to meet the deadline,” he said.

The BSP issued Memorandum No. 2016-012 informing banks about the adoption of the clearing of checks via electronic presentment as approved by the Monetary Board.

“To ensure the smooth implementation of this new process, banks are enjoined to actively participate in the preparations for the electronic check clearing,” the central bank stated in the memo.

The BSP has designated PCHC as the exclusive provider of electronic check clearing services and is tasked to implement the clearing of checks via electronic presentment through its Check Image Clearing System (CICS).

Using the CICS, only the digital images of checks and its electronic payment information would be transmitted to the paying bank unlike the previous clearing system which requires the physical delivery of checks.

The new check clearing process is expected to speed up the crediting of funds to depositors’ account from three to five banking days to only one banking day.

Aside from promoting financial consumer welfare, this reform initiative enhances the efficiency of the domestic payment system and promotes the faster movement of goods and services in the country.

Data showed PCHC processes about 700,000 checks every day with an average value of P135 billion.