The policy-making Monetary Board of Bangko Sentral ng Pilipinas approved the adoption of the electronic clearing of checks that will cut the clearing process from three days to one day starting January 2017.
“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,” Bangko Sentral said in a statement.
“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,” it said.
The Philippine Clearing House Corp., a Bangko Sentral-designated exclusive provider of electronic check clearing services, will implement the clearing of checks via electronic presentment through its check image clearing system.
Using the system, only the digital images of checks and their electronic payment information are needed to be transmitted to the paying bank. The previous clearing system requires the physical delivery of checks.
Bangko Sentral urged banks to actively participate in the preparations for electronic check clearing to ensure the smooth implementation of the new process.