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CICS OM 17-003

Updated: Dec 22, 2020

18 January 2017


TO : All Member/Participant Banks


RE : IMPLEMENTING GUIDELINES COVERING SECTION 6.3 OF THE CHECK IMAGE CLEARING SYSTEM RULES AND

REGULATIONS (CICS RR)


Pursuant to Section 6.3 of the CICS Rules and Regulations, (CICS RR), we enumerate the following guidelines/procedures PCHC will observe in case it receives a directive/instruction from the Bangko Sentral ng Pilipinas to either exclude a participating bank from clearing OR limit the value of clearing items to be settled by its Payments and Settlements Office, to wit:


1. Directive is to Exclude a Participating Bank from Clearing


Upon receipt and confirmation, PCHC shall broadcast/announce to all Member Banks via SMS and email to the

respective Liaison/Clearing Officers that a participating bank shall be excluded from clearing. The notification shall

be confirmed by a Memo Circular to be likewise emailed to all Liaison/Clearing Officers with a hard copy produced

and sent to all banks presidents. There are two possible situations. Following are the guidelines for each situation:


A. The directive Advice/Notice is received on or before 4:30 PM cut-off:


a. Excluded bank shall immediately be barred from transmitting its outward ICLs and receiving inward ICLs

from other banks thru the PBM.


b. All items already sent and received prior to receiving the notification shall automatically be excluded in the

computation of clearing results.


c. PCHC shall provide detail list of the affected transactions to all banks for their information only as their

respective DDA balance affected.



B. Directive Advice/Notice is received after 4:30 PM cut-off


a. Excluded Bank shall immediately be barred from transmitting all its outward ICLs and receiving inward

ICLs from the banks thru the PBM.


b. PCHC shall execute an unwinding process for all the transactions of the excluded bank and generate the

supplementary clearing results for BSP. This will effect the reversal of the transaction totals included in the

clearing results for the day.


c. PCHC shall generate unwinding reports covering all transactions transmitted by the excluded bank as well

as those transmitted by other participating banks that are drawn against it.


d. Banks will be provided with the list of all affected transactions.


2. Directive is to LIMIT the Value to be Cleared/Settled


a. Upon receipt of the directive, PCHC shall accordingly inform the concerned bank indicating the amount

available for settlement of the bank’s inward clearing items.


b. It is mandatory on the part of the concerned drawee bank to identify returnable items to cover the amount to

be unwound.


c. Drawee bank shall return the selected items to be dishonored and shall transmit the dishonored items to be

returned using Return Reason Code ‘t’ (Pursuant to letter instruction/directive of the BSP).


d. Failure of the concerned drawee bank to return items in accordance with the unwinding requirement of the

directive on or before 8:00 PM of same clearing day shall mean forfeiture of its right to partial unwinding and

shall be construed as the bank’s consent or authority for PCHC to advice all Drawee banks to return ALL ITEMS

received from the concerned bank.


e. Partial unwinding shall be reflected in the AM Returns Window.

CICS OM No.17-003
.Implementing Guideline
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