Check clearing goes electronic in 2017

MANILA — The Philippine Clearing House Corporation (PCHC) will start implementing the electronic clearing of checks on Jan. 20, 2017.

This after the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) approved the adoption of check clearing via electronic presentment through the PCHC’s check image clearing system (CICS). The reform initiative is vital in the BSP’s goal of promoting the country’s financial stability.

The CICS process is expected to speed up the crediting of funds to depositors’ accounts from the current three to five banking days to only one banking day.

Under the existing clearing system, physical delivery of checks is required. On the other hand, only the digital images of checks and their electronic payment information need to be transmitted to paying banks under the CICS.

A memorandum of agreement was signed between the BSP and PCHC, in which the central bank will take a more active role in supervising the country’s check clearing system. This would promote financial consumer welfare and enhance the efficiency of the domestic payment system.

To ensure faster movement of goods and services in the country through the smooth implementation of this new process, the BSP enjoins the banking community to actively participate in the preparations for electronic check clearing. PNA/northboundasia.com