CICS OM 17-012
Updated: Dec 22, 2020
14 February 2017
TO : All Clearing Banks/Institutions
RE : HANDLING OF AN EXCEPTION INVOLVING A REGULAR CLEARING ITEM TREATED AS DUPLICATE BY THE
DRAWEE BANK'S PBM
1. We received a report regarding a Regular Clearing Item (RCI) that was automatically returned by the PBM of the receiving Drawee Bank due to ‘duplicate’ record.
2. While auto-return of duplicates form part of normal CICS operations, a legit item may be treated as duplicate thus, automatically returned to the Presenting Bank within the forward session if the following circumstance occur:
2.1. Two checks with sequential serial number drawn against Bank A on same account number were issued to two
2.2. The 1st Check was deposited to Bank B which then scanned the document. However, during scanning, the
Serial Number was misread which necessitated a correction. Unfortunately, instead of keying the correct Serial
number e.g. 123456, entered 123457 which is the serial number of the 2nd Check issued to the other Payee
who deposited it to Bank C.
2.3. Bank A did not mind the error despite the tag made by the Front-end System of Bank B (tagging of corrected
MICR code line is a requirement under CICS). Hence honored it. On the other hand, the 2nd Check that was
transmitted by Bank C was automatically rejected by the PBM of Bank A as duplicate item since details of the
pre-qualified MICR code line of the check image was already stored at its PBM.
2.4. Bank C now asks how to address and settle this kind of exception noting that it did not actually send a
duplicate item. This accordingly will not sit well with its customer if informed that funds availability will be
3. In view of the foregoing, hereunder are the relevant procedures to be observed when such type of exception is encountered:
3.1. Re-clear the RCI within the same clearing session using a different work type i.e. Re-Clearing; OR
3.2. Settle the exception with a CR/CS; in case re-clearing would still result to duplication (duplicate record has also
been re-presented as re-clearing).
3.2.1. Upon confirmation by the receiving Drawee Bank (DB) that the auto-returned as duplicate item is a legit
demand against it, the Presenting Bank (PB) shall prepare a Clearing Receipt/Charge Slip (CR/CS) to
regularize the transaction. The CR/CS shall be transmitted within the same clearing session to the Drawee
Bank to settle the discrepancy/exception.
3.3. PB shall indicate in the CR/CS the following information:
“Settlement of the duplicate item record automatically returned by the Drawee Bank’s PBM”.
3.4. PB shall encode the minimum required MICR code line on the CR/CS such as:
3.4.1. Serial number of the CR/CS
3.4.2. BRSTN of the Drawee Bank
3.4.3. Transaction code
3.4.4. Amount of the item
3.5. If transmission missed the same clearing session, the CR/CS will be scanned/processed as part of the CICS
outward demand of the Presenting Bank on the next regular clearing session.
3.6. The affected PB (in this case Bank C) shall impose an inconvenience fee against the erring other PB (in this case
Bank B). The fee to be collected separately via CR/CS shall be the amount of the item multiplied by the average
IBCL rate for the day (minimum of Php1,000.00).
4. Should you need further information, please do not hesitate to call our Help Desk at 5230315 (look for Frenildo Ayonon, Erick Garcia or Hector Lasaleta) or 8861344-47 (look for Anthony Manongas).