November 13, 2020 T O : All Clearing Banks / Institutions R E : RESUMPTION OF CLEARING AND SETTLEMENT TODAY, NOVEMBER 13, 2020 1. Per new advisory (BPU-2020-105A) issued by the BSP, we wish to inform that PhilPaSS opens today for Normal Operations. 2. As such, clearing and settlement for CICS, PESONet and PDDTS (for both RTGS/PvP and Batch EOD) resumes today, November 13, 2020 observing usual cutoff times. 3. Please be guided accordingly.

November 16, 2020 T O : All CICS Participant Banks / Institutions R E : NEW CLEARING PARTICIPANTS/BRSTN REGISTER UPDATES 1. With reference to various request letters/notices received from the clearing participant banks, we enumerate hereunder the following updates to the PCHC clearing participant banks/BRSTN Register and Operating Parameter, viz: 1.1. New Clearing Participants BANK/BRANCH BRSTN ADDRESS CBC-MEDICAL CENTER PARAÑAQUE (MS3) 01010-291-4 Dr. Arcadio Santos Avenue, San Antonio, Parañaque City SBC-A. ROCES AVENUE 01014-220-4 83 Don A. Roces Avenue, Brgy. Laging Handa, Quezon City LBP-IMELDA (ZAMBOANGA SIBUGAY) 61035-002-7 National Highway, Poblacion Imelda, Zamboanga Sibugay BDO-WALTERMART-CAPAS TARLAC 22053-024-0 G/F Waltermart Capas, MacArthur Highway, Brgy. Sto. Domingo 1, Capas, Tarlac 2315 RBC-CLARK GLOBAL CITY 06107-005-3 Two West Aeropark, Gatwick Gateway Clark Global City, Clark Freeport Zone Mabalacat, Pampanga BDO NB-NEGROS OCCIDENTAL-SIPALAY 70118-001-2 Door 2, Island Adventures Tourist Inn Bldg., Alvarez St., Brgy. Poblacion 1 Sipalay City, Negros Occidental CBB-ANGONO 01145-019-9 Emilia Bldg., 785 Quezon Ave., Brgy. San Isidro, Angono, Rizal CBB- MORONG 01145-020-9 Tomas Claudio St., Brgy. San Pedro, Morong, Rizal 1.2. Relocation/Change in Branch Name and/or Address BRSTN BANK/BRANCH NAME FROM TO 13053-024-6 BDO Malolos-McArthur Highway - 81 Waltermart-Malolos - Location Code Cabana Space A, The Cabana G/F Waltermart Malolos, MacArthur Small, Km 44-45, McArthur Highway, Brgy. Longos, Malolos, Highway, Malolos, Bulacan Bulacan 01107-057-9 RBC BGC 7th Ave.-Unit GF7, Trade BGC-32nd Street-One World Place and Financial Tower Bldg., 7th 32nd Street, Bonifacio Global City, Ave. cor. Lane Q Road, BGC, Taguig City Taguig 2. Pursuant to CICS OM No. 17-004 dated January 18, 2017, the aforementioned updates will be implemented effective November 16, 2020. 3. For your information and guidance.

November 16, 2020 T O : All CICS Participant Banks / Institutions R E : CONTINUE SUSPENSION OF BANKING OPERATIONS IN REGIONS AFFECTED BY TYPHOON ULYSSES 1. We received a copy of Ybanag Banker's Association, Inc. Resolution No. 2020-09, suspending banking operations in their area today, November 16, 2020 to clean up respective homes and community of flood debris in support of government initiative. 2. For your information and guidance.

November 19, 2020 T O : All PESONet Participant Banks / Institutions R E : CONNECTIVITY VIA PESONet WEB SERVICE API 1. We are pleased to announce that China Bank Savings, Inc. (CBSI) has completed its User Acceptance Testing (UAT) on the use of PESONet Web Service API. 2. The Bank has submitted sign-off after successfully completing heartbeat tests prior to migrating to the production environment. 3. CBSI started receiving PESONet Transactions via Web Service API since November 16, 2020. 4. For information and guidance.

November 19, 2020 T O : All PESONet Participant Banks / Institutions R E : PARTICIPATION OF BANK OF MAKATI IN PESONet 1. We are pleased to announce the participation of Bank of Makati in the Phil. EFT System Operation Network (PESONet) ACH effective December 01, 2020. 2. Bank of Makati has an assigned BRSTN 01121-001-2 and will use its BIC: MKRUPHM1XXX. 3. Please include the said bank in your respective PESONet participant's directory and disseminate to your respective branches/offices. 4. For information and guidance.

November 25, 2020 T O : All Clearing Banks / Institutions R E : CLEARING CUT-OFF STARTING DECEMBER 1, 2020 1. In connection with the BSP PhilPaSS Advisory (BPU-2020-109), we wish to inform that PCHC will revert to its normal operating hours starting December 1, 2020. 2. As such, all clearing participants shall strictly observe the following cut-off: PAYMENT SYSTEM CUT-OFF TIME Nationwide Check Clearing 4:30 PM PESONet 4:00 PM PDDTS RTGS/PvP 4:00 PM PDDTS Batch EOD 4:00 PM 3. Please be guided accordingly.

October 9, 2020 T O : All Member/Participant Banks R E : IMPLEMENTATION OF THE MORNING ADJUSTMENT WINDOW 1. We are pleased to inform that the final UAT exercise for the implementation of Morning Adjustment Window (MAW) system conducted from September 16 to September 23, 2020 was successfully completed. 2. In this connection, we will start to make the MAW system available for LIVE’ implementation on October 23, 2020 to all banks that have submitted their sign-off forms. Names of banks that have submitted will be published in separate e-mail Advisory. This means that only banks that have undergone UAT and submitted the Sign-off Forms shall be allowed access to the MAW system. 3. As a matter of procedure, MAW will include passing of an electronic charge slip to effect the adjustment intended to settle the clearing discrepancy of the previous clearing day. A participating bank can only settle via MAW if its counter party is also a MAW participant, to wit; 3.1. Consent. While acceptance of the electronic charge slip to settle the discrepancy is mandatory and requires no confirmation from the accepting party, receiving banks should have the ability to reject if the MAW transaction received bears erroneous or inaccurate detail/s. 3.2. Billing. For every MAW transaction, PCHC shall charge the erring bank (original presenting bank of the clearing item with discrepancy), the amount of ₱200.00. per transaction. Such charge shall be included in the usual monthly billing (Adjustment Charges). 4. Participants in the Morning Adjustment Window must strictly observe the rules set forth in the MAW Governing Terms of Usage (Attachment A). 5. Clearing participants wishing to join at a later time, may request availability of the UAT environment for testing and subsequent submission of Sign-off and Admin Request Form. 6. A step-by-step guide can be found in the MAWS Operating Guidelines which is likewise enclosed (Attachment B) for reference.

September 14, 2020 T O : All Member/Participant Banks R E : PHOTOCOPY REQUEST OF CLEARING ITEMS 1. In line with PCHC’s thrust to improve processes in rendering the above service to participant banks, starting September 16, 2020, all photocopy production shall be printed in a standard form without additional cost to the requesting banks. 2. Relative to this service, we wish to remind that in order for PCHC to serve expeditiously your photocopy requests, we need to be furnished the necessary information to immediately locate requested images from our archive, to wit: 2.1. Information required for: 2.1.1. Outward Items: 2.1.1.1. Date of Clearing 2.1.1.2. BRSTN of Sender/Presenting Bank 2.1.1.3. Check Number 2.1.1.4. BRSTN of Drawee Bank 2.1.1.5. Drawer Account Number 2.1.1.6. Amount of Check 2.1.2. Inward Items: 2.1.2.1. Date of Clearing 2.1.2.2. Check Number 2.1.2.3. BRSTN of Drawee Bank 2.1.2.4. Drawer Account Number 2.1.2.5. Amount of Check 3. We likewise wish it noted that cost for reproducing photocopies are billed separately via Charge Slip with the following terms and condition: 3.1. Billing/Settlement of photocopy production is done on a monthly basis. 3.2. Cost per photocopy page is ₱45 (this pricing has not been changed since March 1, 2004). However, for bulk requests depending on the volume, an additional maintenance cost shall be charged to the requesting bank, viz: 3.2.1. Maintenance cost for 19 pages and below: 0% 3.2.2. Maintenance cost for 20 to 49 pages: 25% of ₱1,200 which is equivalent to ₱300.00 3.2.3. Maintenance cost for 50 to 75 pages: 50% of ₱1,200 which is equivalent to ₱600.00. 3.2.4. Maintenance cost for 75 pages and above: 100% of ₱1,200 4. While PCHC may be able to immediately provide photocopy of images presented under CICS that are still available at the online archive, considerable time and effort is needed to locate Check images especially those captured under the ECCS (previous system) which require additional time to retrieve/convert images from long term storage media. 5. For your convenience, we attached a form marked as Annex A to be used in documenting your photocopy request, to be signed by requesting bank’s authorized signatory/liaison officer.

July 08, 2020 T O : All Member/Participant Banks R E : OPERATING GUIDELINES TO GUARD AGAINST MULTIPLE PRESENTMENTS OF A CHECK AND RULES TO BE OBSERVED IN THE SETTLEMENT OF A MULTIPLE PRESENTMENTS CLAIM OF A DRAWEE BANK 1. After discussion and consultations conducted relative to Memo Circular 3609 dated April 29, 2020, we enumerate additional operating guidelines to be observed to watch out for possible re-presentment of a Check that has already been previously negotiated/paid, to wit: 1.1. As prescribed under banking regulations, all participant banks/institutions must implement strict KYC before a customer is allowed to open a demand deposit account. For banks providing digital deposit facility or deposit through digital mobile capture (Mobile Deposit Facility), this instruction was reiterated in Memo Circular 3514 dated February 19, 2019 as one of the safeguards against potential fraud. 1.2. Memo Circular 3514 likewise directed banks offering Mobile Deposit Facility (Digital Presenting Banks) to require their mobile check depositors to write not only the account number to which proceeds of the deposited check will be credited but also the following information at the dorsal side of the Check/Check Image, to wit: 1.2.1. Name of Bank to which the deposit is being made 1.2.2. Date of Clearing 1.2.3. Signature/Endorsement of the Depositor/Payee 1.3. The above Dorsal Deposit Information or DDI must be indicated by mobile check depositors at the back of the Check before capture to alert any bank (a) being handed a Check for deposit or encashment, or (b) receiving a Check Image through CICS for deposit, of possible earlier deposit of that check. 1.4. If there is any alteration, erasure, or duplicate indication of account number in the DDI, the Check/Check Image should be refused acceptance. 1.5. In case a bank accepts a Check and transmits its image for clearing despite the alteration/erasure on DDI (regardless of whether a counter signature of the depositing payee/client is shown on the alteration/erasure in the DDI), that Presenting Bank (whether a Digital or Non-digital Bank) shall be answerable to the Drawee Bank for reimbursement of the amount paid by the Drawee Bank in excess of the amount of the Check due to multiple presentments, subject to the settlement guidelines under Section 4 below. 2. While the Participants Bank Module (PBM) is capable of detecting double or multiple presentments, such capability is limited, thus not all succeeding presentments may be auto- returned by the PBM or returned by the Drawee Bank within the Prescribed Period. 3. After our online discussion of Memo Circular 3609 where the elimination of the requirement for Front Digital Deposit Information (FDDI) was suggested, we have to revise the rules provided in that Memo Circular for the settlement of claims of Drawee Banks on multiple Check presentments (the "Multiple Presentments Claims”). Settlement of such claims shall now be in accordance with the guidelines under Section 4 below. 4. When PCHC receives from a Drawee Bank a written report of multiple presentments of a Check drawn against it together with a request for settlement of its Multiple Presentments Claim- 4.1. Each of the Presenting Banks (Digital or Non-Digital) which gets credited through CICS for the amount of the Check within 180 days from the date of the Check, as indicated in the Multiple Presentments Claim (the “Respondent Banks”) shall be required by PCHC to submit the following: 4.1.1. the cleared Physical Original Check covered by the deposit transaction the Presenting Bank processed (the “POC”), as mentioned in the Multiple Presentments Claim. 4.1.2. comments of the Presenting Bank on the statements of the Drawee Bank in its Multiple Presentments Claim regarding the deposit transaction processed by the Presenting Bank (the “Drawee’s Statements”). 4.2. PCHC’s requirement shall be conveyed to the Respondent Bank/s through electronic mail (PCHC Mail). The Respondent Bank/s shall submit the requirements to PCHC within 15 days from receipt of the PCHC Mail addressed to them/it. 4.3. A Respondent Bank’s failure to submit the requirements within the 15-day period will be deemed its admission of (a) the Drawee’s Statements on its deposit transaction and (b) non-possession of the POC. 4.4. After the expiration of the 15-day submission period, PCHC shall evaluate the submissions of the Respondent Banks and, at its option, conduct further inquiry with any or all of the Respondent Banks. 4.5. In deciding on the Multiple Presentments Claim of Drawee Bank, PCHC shall go by the following guidelines: 4.5.1. the Respondent Bank which can submit the POC shall not be answerable to the Drawee Bank on the Multiple Presentments Claim, provided that – 4.5.1.1. the POC bears no DDI markings – if it was transacted/deposited over-the- counter; or 4.5.1.2. the POC bears DDI without erasure or alteration and showing that the Respondent Bank is the designated depository bank, the date of capture is the same as the date of deposit, the Account number is that of the depositor – if it was transacted via Mobile Facility 4.5.2. any Respondent Bank which – 4.5.2.1. cannot submit to PCHC the POC specified in Section 4.51. above, or 4.5.2.2. is deemed to have admitted non-possession of the POC (as provided in Section 4.3 above), (the “Responsible Respondent Bank”) shall reimburse the Drawee Bank the amount, or in case of multiple Responsible Respondent Banks, its share in the amount, paid by the Drawee Bank in excess (as indicated in the Multiple Presentments Claim) of the Check amount (the “Overpaid Amount”). If there is more than one Responsible Respondent Bank, they all shall share equally in reimbursing the Drawee Bank the Overpaid Amount. 5. Reimbursement or credit of the Overpaid Amount of the Check to the Drawee Bank shall be implemented by way of the usual charge slip on the basis of PCHC’s ruling, as provided in Section 4.5.2 above. 5.1. If the Multiple Presentments Claim of the Drawee Bank is not filed with or not settled through PCHC, the procedure in Section 4 above shall not apply. 5.2. A Multiple Presentments Claim may be filed by the Drawee Bank against the Presenting Bank within 180 days from date of the second or subsequent clearing or Check payment mentioned in the Claim. 5.3. In the event the Check covered by the Multiple Presentments Claim gets deposited again, without any Alteration, within 180 days from its date but after settlement of the Multiple Presentments Claim in accordance with Section 4 above, the Drawee Bank shall no longer be entitled to file a Multiple Presentments Claim with PCHC against the Presenting Bank involved in that subsequent presentment. 6. In case a Clearing Item is a Counterfeit (deposited through Mobile Facility or deposited/encashed through Over-the-Counter or OTC Facility), the Drawee Bank is entitled to fully recover the Check, subject to provisions in relevant Operating Memos: 6.1. If detected by the Drawee Bank during the regular inward verification/processing – 6.1.1. Drawee Bank shall return the Check Image within the Prescribed Period. 6.1.2. Presenting Bank will hand-over a Return Check Advice (RCA) to the depositor to inform of its return but shall turn over the POC to the Drawee Bank for use as evidence within ten (10) banking days from receipt of return ICL as provided in Sections 1.1.1 and 1.1.2.6.2 (Duplicate or Counterfeit Check) of CICS OM No. 18-027 dated December 14, 2018. 6.2. If detected by the Drawer after clearing of the Item and the Drawee Bank is questioned about it – 6.2.1. Drawee Bank shall deliver a Transmittal Letter and the Clearing Receipt to the Presenting Bank, attaching the Drawer’s Affidavit. 6.2.2. Presenting Bank shall acknowledge receipt of the Transmittal Letter if delivered within One Hundred Eighty (180) days from clearing date of the Check claimed to be a Counterfeit. 6.2.3. If the Presenting Bank consents to the return, it may accept/sign all copies of the Clearing Receipt. 6.2.4. The Drawee Bank shall effect settlement by sending the Clearing Receipt in the next available clearing session in accordance to Sections 2.1.1.3.3 and 2.1.2 of CICS OM No. 18-028 dated December 17, 2018. 6.2.5. If the Presenting Bank does not consent to the return, it shall respond to the Drawee Bank accordingly. 6.2.6. In any case, if the Drawee Bank is not satisfied with the response of the Presenting Bank (or the lack of it), it may file a claim against the Presenting Bank with the PCHC Arbitration Committee. 7. In all claims filed with PCHC, penalty shall be imposed on any Presenting Bank which cannot present the cleared POC covered by the claims. The penalty shall be in the amount of Php1,000.00 per item payable to PCHC for violation of Section 12 of the CICS Rules and Regulations. 8. Considering the importance of the examination of the POC, we strongly suggest to the clearing participant banks to remind/encourage their clients to check their Statement of Account (SOA) as soon as received to enable the Drawee Bank to meet the 180-day period specified in Section 5.2 above. 9. Double or Multiple presentment of a Check by the same Presenting Bank is clearly and sufficiently covered by Section 1.1.2.6.2 of CICS OM No. 18-027 dated December 14, 2018, thus no longer covered in this memo. 10. This Operating Memo supersedes Memo Circular No. 3609 dated April 29, 2020. 11. For guidance and strict compliance.

February 13, 2020 T O : All Member/Participant Banks R E : INCLUSION OF THE PHRASE, “CONSERVATORSHIP/RECEIVERSHIP ORDER” ON THE DESCRIPTION OF RETURN REASON CODE “F” 1. A government regulator or authorized agency may issue a “No Debit Allowed” or a related order on deposit accounts of companies/entities it places under ‘Conservatorship’ or ‘Receivership’. 2. With the assignment of a Conservator or a Receiver to take charge of a company or entity’s operations or assets, the affected accounts of that company or entity may be assigned a new set of signatories which shall be binding until such order is lifted or discharged. As such, Checks issued by affected company or entity prior to the issuance of an order may be returned. 3. Recognizing the need to return a clearing item that is compliant with a Conservator or Receiver order, we have added the phrase, “Conservatorship/Receivership Order” on the description of the Return Reason Code “F”, to wit: Return Description Tran Code Re-Presentable Reason Code _________________________________________________________________________________ F Account under Garnishment/Covered by 24 R Hold/Freeze/Conservatorship/ Receivership Order 4. With the issuance of this Operating Memo, PCHC will send broadcast of such changes to update the description of Return Reason “F” in the banks’ PBM (Return Reason.INI) effective February 17, 2020. Front-End Systems of participant banks other than PCHC-provided (for Rural Banks), may still need to effect manually the update. 5. Kindly update Section 7 (Return Reason Codes) of CICS OM No. 18-026 to reflect the new description of Return Reason Code ‘F’.