Updated: Dec 22, 2020
18 January 2017
TO : All Member/Participant Banks
RE : NON-ACCEPTANCE OF OLD DESIGN CHECKS STARTING 01 JUNE 2017
1. As announced in Memo Circular No. 3126 dated 06 June 2016, participating member banks shall no longer accept
for clearing effective 01 July 2017 Checks that are non-compliant with the New Check Design Standards and Specifications. Exceptions to the policy are old format post-dated Checks (PDCs) that were accepted by banks for warehousing purposes until 31 December 2016.
2. Except for PDCs mentioned above and effective 01 July 2017, we wish to remind that old format/design Checks inadvertently presented for clearing shall be subject to penalty of P250.00 per item to be collected by PCHC from the erring Presenting Bank.
3. Drawee Bank shall return the old format Check and collect the corresponding Service Charge from the Drawer. Drawee Bank shall use the return reason code “R” (Old Format Check).
4. Should the Drawee Bank decide to honor, it shall process and similarly collect a penalty charge of P250.00 per item from the erring Presenting Bank via Clearing Receipt/Charge Slip (CR/CS).
5. Direct Presentation of Old Format/Design Checks may be separately regulated by the Drawee bank’s internal policy which may be exercised independent of this policy.