CICS OM 18-023
Updated: Dec 10, 2020
September 28, 2018
T O : All Clearing Banks/Institutions
R E : INCORRECT AMOUNT ENCODING IN THE ELECTRONIC PAYMENT INFORMATION (EPI)
1. In order to avoid inconvenience to both Check issuer and payee, effective immediately Drawee Banks should no longer return Regular Clearing Items (RCIs) if the EPI transmitted to them show incorrect (“over or under” encoded) Check amount. Instead, Drawee banks shall coordinate/initiate settlement with the Presenting Bank any difference/discrepancy between the Check and the encoded amount on the next clearing session via the usual Charge Slip.
2. The foregoing change was discussed and agreed during PCHC’s consultative meeting with the Clearing Officers/Members of the Board of the Clearing Officers Club, Inc. (COCI) to proactively manage impact/consequence of such error between and among banks.
3. For the effort exerted and/or monetary loss caused by erroneously encoding/transmitting an incorrect amount on the Check, the following inconvenience fee shall be collected by the Drawee Bank from the Presenting Bank, viz:
3.1. For over-encoding, ₱1,000.00 or the amount of discrepancy multiplied by the Average IBCL Rate for the day, whichever is higher;
3.2. In case of under-encoding, fixed ₱100.00 per item.
4. This CICS Operating Memo supersedes CICS 17-020 dated September 25, 2017.
5. Please be guided accordingly.