Banks reminded on fees on dormant accounts

The Bangko Sentral ng Pilipinas (BSP) has reminded banks to comply with the regulations governing fees on retail bank products or services as well as dormant deposits.

BSP Deputy Governor Chuchi Fonacier issued Memorandum 2017 – 025 reminding banks and non-stock savings and loan associations (NSSLAs) on the rules on the imposition of dormancy under Circular 928 issued last Oct. 24.

Fonacier said banks could only impose dormancy fee on a dormant deposit account five years after the last activity especially with balance falling below the minimum monthly average daily balance (ADB).

She added banks and NSSLs should comply with two notice requirement prior to the charging of dormancy fees not exceeding P30 per month.

When an account is about to become dormant, Fonacier explained the depositor should be notified of its potential dormancy at least 60 days prior to the commencement of the dormancy period.

Fonacier said the notification should contain the effect of dormancy to transfer the account from active to dormant status, and advice on how to reactivate the account as well as a reminder that the dormant account would be included in the list of unclaimed balances to be submitted to the Treasurer of the Philippines in accordance with the Unclaimed Balances Act, if said account has no activity for 10 years.

“Banks should adopt appropriate internal control measures to ensure that all transactions affecting dormant deposit accounts are legitimate,” she said.

Prior to the imposition of the lower dormancy fees of P30 per month last October, banks and NSSLAs slapped dormant fee from P200 and above per month.

Fonacier said violations of the provisions on dormancy fees would be subject to applicable sanctions and penalties provided under Section X299 of the Manual of Regulations for Banks and Section 42995 of the Manual of Regulations for Non-Bank Financial Institutions.

Latest data from the central bank showed deposit liabilities of Philippine banks grew 14.1 percent to P11.01 trillion in the first half from P9.56 trillion in the same period last year.

Peso deposits rose 14 percent to P9.12 trillion in end-June from P8 trillion while foreign currency deposits owned by residents rose 14.5 percent to P1.89 trillion from P1.64 trillion.