CICS OM 18-022

Updated: Dec 10, 2020

April 24, 2018


T O : All Clearing Banks/Institutions


R E : NON-ACCEPTANCE OF CHECKS WITH TECHNICAL DEFECTS



1. Further to CICS Operating Memo (OM) No. 17-019 we wish to reiterate that Checks with technical defects are not acceptable for clearing. As such, Presenting Banks take “full responsibility” of making sure that Checks are examined and verified to be free from technical defects before they are accepted for clearing/electronic transmission to the Drawee Bank.


2. Section 16.3 of the CICS Rules and Regulations states that in electronically transmitting a Regular Clearing Item (RCI) to the Drawee Bank through CICS, the Presenting Bank warrants that the Deposited Check is complete and regular on its face. Hence and for uniformity of interpretation, we enumerate once again technical defects that fall under the examination/verification responsibility of the Presenting Bank:


2.1. Post-dated Check

2.2. Stale dated Check

2.3. Out of date (i.e. Feb. 30, 2017), Missing Date or Incomplete Date

2.4. 3rd Presentment

2.5. Amount in words and figures differ

2.6. Documentary Stamp missing (for peso-converted foreign denominated draft)

2.7. Validity restricted (printed on the face of the Check)

2.8. Previously Negotiated/Cancelled Check

2.9. With alteration, smudges/stains (on the face of the Check which includes the date, payee, amount in figures/words, account number, account name, check number and MICR characters)

2.10. Missing Payee

2.11. No amount in figures

2.12. No amount in words (except for bank issued MCs, CCs and DDs)

2.13. Missing Drawer Signature

2.14. Payee line indicated:

2.14.1. Customer Name and Cash

2.14.2. Customer name and/or Cash

2.14.3. Business Name or Cash

2.14.4. Business Name and/or Cash

2.14.5. Government Agency and/or Cash


3. The Drawee Bank shall be responsible on the following aspects only as regards the Regular Clearing Item (RCI):

3.1. Verification of Drawer’s signature;

3.2. Determination of funding; and

3.3. Validation of data transmitted by Presenting Bank

4. For proper guidance and strict compliance.

CICS OM No.18-022
.Non-Acceptance of Chec
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