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CICS MC 3616

Updated: Dec 18, 2020

August 10, 2020


TO : All Clearing Banks/Institutions


RE : REMINDER ON THE NON-ACCEPTANCE OF CHECKS WITH ERASURES, ALTERATIONS AND/OR DUPLICATE ACCOUNT NUMBER WRITTEN AT THEIR CORRESPONDING DORSAL SIDES


1. We continue to receive reports of incidents where Checks found to have any of the following exceptions at the dorsal side are being disregarded despite the rule of non-acceptance pursuant to Memo Circular No. 3514 dated February 19, 2019 and CICS Operating Memo No. 20-033 dated July 8, 2020, to wit:


1.1. Erasure/s on the account number

1.2. Two account numbers are written

1.3. Dorsal Deposit Information (DDI) for another bank is indicated


2. As a gentle reminder and for guidance of all bank branches/offices accepting check deposits, we are issuing this reminder such that when looking at the back (dorsal side) of a physical Check, the accepting bank branch/office shall make sure that:


2.1. Prior to accepting a Check, there is no previous negotiation. If a check was previously negotiated, it can easily

be identified as there is the presence of an endorsement by a depository bank (bank guarantee or UIC) at its

dorsal side.


2.2. Written DDI does not belong to another bank. It may be recalled that under the above mentioned Memo

Circular and Operating Memo, Digital Depository Banks are mandated to require their respective clients to

write/indicate at the dorsal side of the Check the following details:


2.2.1. The Name of the Digital Depository Bank

2.2.2. The Depository Account Number in the Digital Depository Bank

2.2.3. The Date of Presentation/Mobile Capture

2.2.4. The endorsement of the Payee/s by affixing their Signature


2.3. There are no erasures in the endorsement area (DDI). An erasure particularly on the account number may

indicate previous negotiation thru a different depository bank.


3. In an endorsement/DDI of another bank is already indicated or if there are erasures or duplicate indication of Account Number at the dorsal side of a physical Check, a bank should refuse acceptance of such Check for deposit. Otherwise, it may bear/share the loss incurred by the Drawee Bank due to multiple presentments.


4. If the physical Check shows no erasures or any indication/writing at its dorsal side at the time of its deposit but turns out later that it has already been paid or honored previously, the Drawee Bank and/or the Presenting Bank through its Clearing Officer should report the incident to PCHC for proper disposition.


5. For information and dissemination of all banks' branches/offices.

MC.3616
.Reminder on the Non-Acceptance o
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