CICS OM 17-011

20 January 2017

Memo To : All Member/Participant Banks

Subject : SCHEDULE OF BANK-TO-BANK PENALTIES/CHARGES

1. We enumerate hereunder the updated list of Bank-to-Bank penalties/charges to be implemented under the Check Image Clearing System (CICS), to wit:

1.Bank-to-Bank

Description Penalty

1.1.Checks w/o UIC or Bank Guarantee Stamp ₱100.00 per item

1.2.Checks with Unreadable BRSTN on the UIC or

Bank Guarantee Stamp ₱50.00 per item

1.3.Checks w/o 2nd Presentment Stamp ₱200.00 per item

1.4.Returned Checks w/o Prescribed Return Stamp

and/or w/o any of the required info on stamp ₱100.00 per item

1.5.Old Format Checks (effective 01 July 2017)

To be collected by Presenting Bank from its ₱500.00 per item

depositor to be distributed as follows:

• PCHC ₱250.00 per item

• Presenting Bank/Branch ₱250.00 per item

1.6.Special Clearing of Return Items ₱1,000.00 per presentation or delivery

1.7.3rd Presentation and Dishonor of an item Amount of the item multiplied by the average IBCL rate for the day (minimum of ₱1,000.00 per day)

1.8.Re-clearing of PAYMENT STOPPED or CLOSED Amount of the item multiplied by the

ACCOUNT Checks average IBCL rate of the day (minimum of ₱1,000.00 per day)

1.9.Re-clearing of a Check by a Bank Other than the Amount of the item multiplied by the Original Presenting Bank average IBCL rate of the day (minimum of ₱1,000.00 per day)

1.10.Failure to affix 'CLOSED ACCOUNT' ₱200.00 per item

or 'PAYMENT STOPPED' stamp and to perforate

the MICR code line

1.11.CICS Amount Greater than the Actual Amount

of Check

* Receiving Bank opted NOT to adjust Amount of discrepancy multiplied by the

Result thru the AM Returns by the average IBCL rate for the day (minimum of ₱100.00 per day)

* Receiving Bank adjusted Clearing Result Handling Fee of ₱1,000.00

1.12.CICS Amount Less than the Actual Amount of

Check Fixed ₱100.00 per item

1.13.Miscleared Regular Clearing Item Amount of the item multiplied by the average IBCL rate for the day (minimum of ₱100.00 per day)

1.14.Duplicate CICS Item (Regular or Returned) Amount of the item multiplied by the average IBCL rate for the day (minimum of ₱100.00 per day)

1.15.Service Charge on Returned Items ₱2,000.00 per returned Check broken down as follows:

* Credit of Presenting Bank ₱1,000.00

(Note: Non-remittance of ₱1,000.00 to the Presenting Bank subject to penalty of ₱100.00 per day, plus the unremitted service charge)

* Credit of Drawee Bank ₱1,000.00

(Even if covered by deposit on next clearing day)

1.16.Post-dated/Stale-dated/Out-of-Date or Missing Amount of item multiplied by the Drawer's Signature(s) Average IBCL Rate for the day (minimum of ₱100.00 per day)

1.17.Checks returned for the reason "Previously Amount of item multiplied by the

Negotiated/Cancelled" Average IBCL Rate for the day (minimum of ₱1,000.00 per day)

1.18.Additional Penalty Charge for DAUD/DAIF against ₱200.00 per day for every ₱40,000.00

the Drawer amount of Check or a fraction thereof

1.19.Using reason for return other than DAUD/DAIF as ₱200.00 per item

prescribed in CICS RR Section 24.5

1.20.Errors and Omissions in the Electronic Payment Information

* Depository Account Number in case of a ₱1,000.00 per item Returned Check

* Check No. & Transaction Code ₱100.00 per item

1.21.Reward for discovery of Clearing Fraud 10% of Check's face amount but not to exceed ₱20,000.00

1.22.Failure to tag BIR or BOC Checks ₱100.00 per item on 1st Presentation

₱1,000.00 per item on 2nd Presentation (re-clearing)

₱1,000.00 per item for Untagged Check sent by Non-AAB

For information and guidance.

CICS OM No.17-011

.Schedule of Bank-to-Ba

SCHEDULE OF BANK-TO-BA • 996KB