pchc power point 2011

8/3/2019 PCHC Power Point 2011

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Philippine Clearing House Corporation

* owned and operated by private banks* clearing of cheques is done

electronically * uses multilateral netting system

* processing & settlement through DDA of banks & financial institutions that aremaintained with the BSP


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Electronic Cheque System (ECS) Data shallbe the basis for:

- determining the results of exchange- posting to the Banks DDA with BSP

- debiting of Clients Accounts


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- Participant banks shall ensure integrity of data as they represent clearing demandsagainst other participants.

- Reconciliation shall be the responsibility of both the presenting & the drawee banks.

- Erring bank shall initiate/undertakeimmediate corrective action.

- Notifications shall be done by the fastestmeans of communication.


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- Participant bank causing inconvenienceshall be compensated by way of penalties.

- Settlement of discrepancy shall be viacharge slip.

- Penalties shall separately collected viacharge slip.


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- Participating banks shall capture andtransmit MICR code line information toPCHC on/or before 4:30 PM, hence, they

need the following:- MICR Readers/Encoders- Micro computer/PC w/ modem

- Dial up or leased line- Front-end Software- Registration of transmitting branch

- Communication Software


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- Batch size is reduced from 200 to a max of 100 or less items.

- Banks shall download outward / inward

files and reports.- Outward / inward clearing discrepanciesshall be reconciled / proved between the

physical & the ECCS values.- Unmatched items / records shall beaccounted using the Senders or

Drawees Exception reports.


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- The MICR Code line is composed of a seriesof MICR characters divided into fields whichare encoded at the 5/8 band found at the

bottom edge of the Cheque. It has a standardsize, specifications and whose design wasadopted by the BAP.

- Personal Cheque ( 3 x 7 )- Commercial Cheque ( 3 x 8 )


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Account NumberCheque Number Amount

BRSTN (Bank Routing Symbol Transit Number)

Cheque processed through MICR Encoder :


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Account NumberCheque Number Amount(none)

BRSTN (Bank Routing Symbol Transit Number)

Cheque NOT processed through MICR Encoder :


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ECCS PROCESSING FLOW:

BANKHO/CCO

OutwardItemsMaster List/s

Delivery Statement

Courier

(ODC)

PCHC

Package inwardColor CodedPlastic PouchClearing

Reports

Diskette/CD/USB

Courier

I/R BRANCHES

Dispatch Clearing Items(Inward)

BSP

Outward Electronic

Data (4:30PM) Clearing Results

MICR Reader EncoderChecks

2:00PM-

3:00PM


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1. Checks dishonored due to insufficientfunds or credits or with stop- paymentorder shall be returned to the PCHC

not later than 7:30 AM of the nextclearing day. Hence, the return windowis shortened by 9 hours.

BSP Circular No. 681 dated February 8, 2010Effectivity: January, 2011


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2. Demand Deposit Account balances of banks with the BSP are final before9:00 AM of the next clearing day.

3. Banks with current rediscounting lineare entitled to a clean Overdraft CreditLine equivalent to 15% of the approvedrediscounting line.

BSP Circular No. 681 dated February 8, 2010


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4. Banks not meeting established criteria,namely: CAMELS of not less than 3;CAR of not less than 10% and with no

chronic deficiency in legal reserve; as well as other measures as may bedefined by BSP for the purpose, shall put

up a collateralized Overdraft Credit Line with the BSP; otherwise, their outwardclearing items shall be subject to secondday value dating.

BSP Circular No. 681 dated February 8, 2010


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