CICS OM 18-029

Updated: Dec 11, 2020

December 18, 2018


T O : All Member/Participant Banks


R E : UPDATED GUIDELINES FOR STORAGE OF NEGOTIATED OR PAID ORIGINAL CHECKS

1. In accordance with Section 12 of the Amended Check Image Clearing System Rules and Regulations (CICS RR) and as a matter of policy, all Member/Participant Banks are REQUIRED to keep the Original Checks that are already paid/negotiated. The Presenting Bank, however, may opt to outsource the safekeeping of the paid/honored Original Checks to a storage service company of its choice.


2. For fast identification and retrieval, outward items processed for capturing and transmission in a particular day must be bundled/wrapped and labelled with the following details (unless the member bank has its own Document Management Solution that creates unique labeling that easily identifies items for storage):


2.1. BRSTN of the Presenting Bank


2.2. Transaction Date


3. The stored documents will be kept for a period of twelve (12) months, after which the stored documents shall be destroyed except those documents earlier requested for retrieval by the Drawee Bank.


3.1. The additional six (6) months storage period for paid/honored Checks (in relation to the

180-day CICS RR-specified safekeeping period) is to ensure availability of the physical

Check for verification in case a Check is deposited at the last day of safekeeping of a

similar-looking paid/honored Check.


4. Within the 12-month retention period, a Drawee Bank may request for a paid/honored Original Check by sending a formal letter of request to the Presenting Bank, copy furnished PCHC, stating the following:


4.1. Purpose or nature of the request

4.2. Date of Presentation or Transaction Date

4.3. Check Number and Account Number

4.4. Drawee Bank/Branch Name

4.5. BRSTN of the Drawee Bank

4.6. Amount

4.7. Presenting Bank/Branch Name and BRSTN


5. The Presenting Bank shall only entertain a request for retrieval for any of the following reasons,

viz:


5.1. Litigation Court Order

5.2. Fraud Investigation

5.3. Validation of Duplicate/Counterfeit Items


6. The requesting bank’s authorized signatory should sign the letter.


7. The standard turnaround period for retrieval request is as follows:


7.1. Presenting and Drawee Bank/Branches belong to the same region - the Presenting Bank is given five (5) working days to respond and inform the requesting Drawee Bank cc: PCHC,

on the status of the request. PCHC shall not entertain any query or complaint regarding

request for a paid/honored Original Check if it is not furnished any prior communication

regarding the request.


7.1.1. The Presenting Bank has five (5) working days from receipt of the request letter to

make available the requested item to the Drawee Bank.


7.1.2. If the requested item had already been submitted for safekeeping to an outsourced

Storage Provider, within five (5) working days from its receipt of the request letter, the

Presenting Bank shall submit a written Notice of Retrieval to the Storage Provider.

From date of its receipt or retrieval of the requested item/s, the Presenting Bank has

another five (5) working days to make available the retrieved item/s to the requesting

Drawee Bank.


7.2. Either of the Parties belongs to a different region (Provincial/GMA) - the Presenting Bank

has additional five (5) working days (a total of 10 working days, not counting the number

of days needed to retrieve the item/s from outsourced Storage Provider) to make available

the retrieved item/s to the requesting Drawee Bank.


8. The requesting Drawee Bank shall arrange for pick-up of the retrieved item/s from the Presenting Bank. Any pick-up to be made by the Drawee Bank shall be supported with authority to retrieve from the Presenting Bank/Branch concerned.


9. Once the requesting Drawee Bank obtains possession of the retrieved item/s, it shall

automatically become the custodian of the said item/s. Hence, it shall formally inform the Presenting Bank and PCHC of its receipt of the retrieved items.


10. It is the responsibility of the Presenting Bank to strictly observe the forgoing policy and procedures. In case of failure to keep/store the Check within the required period, the Presenting Bank shall be liable for the entire value of the Check (or proportionately, as the case may be) if the requesting Drawee Bank loses a dispute/court case or is made to answer (whether fully or partially) for the loss suffered by the Drawee due to or attributable to the failure of the Presenting Bank to produce/show the relevant Original Check within the 12-month period provided in this Memo.


11. Should you need further details or more information, please do not hesitate to call our Help Desk at 523-0315/523-0616 and Press 1 after the voice prompt (look for Frederick Garcia or Hector Lasaleta) or 886-1344 to 47 (look for Anthony Manongas). Alternatively, any concern

may be e-mailed at PHILCLEAR@pchc.com.ph.


12. This Memo supersedes CICS OM No. 17-015 dated May 16, 2017.

CICS OM No.18-029
.Updated Guidelines for
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