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PCHC Power Point 2011

The Philippine Clearing House Corporation (PCHC) electronically clears cheques between participating banks using a multilateral netting system. Banks transmit cheque data to PCHC by 4:30 PM, including MICR codes containing cheque and bank routing information. PCHC processing the next day determines clearing results and settlement through banks' accounts at the central bank. Banks must reconcile cheque data and exceptions to ensure integrity and resolve discrepancies. A new BSP circular shortened the window for returning dishonored cheques to 7:30 AM and set criteria for banks to receive an uncollateralized overdraft line for covering clearing deficits.

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Fred Catipay
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192 views

PCHC Power Point 2011

The Philippine Clearing House Corporation (PCHC) electronically clears cheques between participating banks using a multilateral netting system. Banks transmit cheque data to PCHC by 4:30 PM, including MICR codes containing cheque and bank routing information. PCHC processing the next day determines clearing results and settlement through banks' accounts at the central bank. Banks must reconcile cheque data and exceptions to ensure integrity and resolve discrepancies. A new BSP circular shortened the window for returning dishonored cheques to 7:30 AM and set criteria for banks to receive an uncollateralized overdraft line for covering clearing deficits.

Uploaded by

Fred Catipay
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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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 are maintained with the BSP

Electronic Cheque System (ECS) Data shall be the basis for:

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

- Participant banks shall ensure integrity of data as they represent clearing demands against other participants. - Reconciliation shall be the responsibility of both the presenting & the drawee banks. - Erring bank shall initiate/undertake immediate corrective action. - Notifications shall be done by the fastest means of communication.

- Participant bank causing inconvenience shall be compensated by way of penalties. - Settlement of discrepancy shall be via charge slip. - Penalties shall separately collected via charge slip.

- Participating banks shall capture and transmit MICR code line information to PCHC 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

- 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 discrepancies shall be reconciled / proved between the physical & the ECCS values. - Unmatched items / records shall be accounted using the Senders or Drawees Exception reports.

- The MICR Code line is composed of a series of MICR characters divided into fields which are encoded at the 5/8 band found at the bottom edge of the Cheque. It has a standard size, specifications and whose design was adopted by the BAP. - Personal Cheque ( 3 x 7 ) - Commercial Cheque ( 3 x 8 )

Cheque processed through MICR Encoder:

Cheque Number

Account Number

Amount

BRSTN (Bank Routing Symbol Transit Number)

Cheque NOT processed through MICR Encoder:

Cheque Number

Account Number

Amount (none)

BRSTN (Bank Routing Symbol Transit Number)

ECCS PROCESSING FLOW:


Checks
MICR Reader

Encoder Courier 2:00PM(ODC) 3:00PM


Delivery Statement

Outward Items Master List/s

Outward Electronic Data (4:30PM)

PCHC Clearing Results BANK HO/CCO Dispatch Clearing Items (Inward)


Package inward Color Coded Plastic Pouch

BSP

Clearing Reports

Courier

Diskette/ CD/USB

I/R BRANCHES

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

1. Checks dishonored due to insufficient funds or credits or with stop- payment order shall be returned to the PCHC not later than 7:30 AM of the next clearing day. Hence, the return window is shortened by 9 hours.

BSP Circular No. 681 dated February 8, 2010

2. Demand Deposit Account balances of banks with the BSP are final before 9:00 AM of the next clearing day. 3. Banks with current rediscounting line are entitled to a clean Overdraft Credit Line equivalent to 15% of the approved rediscounting line.

BSP Circular No. 681 dated February 8, 2010

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 be defined by BSP for the purpose, shall put up a collateralized Overdraft Credit Line with the BSP; otherwise, their outward clearing items shall be subject to second day value dating.

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