271 BOOKING OF DEPOSITS AND WITHDRAWALS

271 BOOKING OF DEPOSITS AND WITHDRAWALS

The following regulations shall govern the booking of deposits and withdrawals of banks.

Clearing cut-off time. As a general rule, all deposits and withdrawals during regular banking hours shall be credited or debited to deposit liability accounts on the date of receipt or payment thereof: Provided, however, That a bank may set a clearing cut-off time for its head office not earlier than two (2) hours before the start of clearing at the Bangko Sentral, and not earlier than three and one-half (3-1/2) hours before the start of clearing for all its branches, agencies and branch lite unit/s doing business in the Philippines, after which time, deposits received shall be booked as hereinafter provided: Provided, further, That banks which are located in areas where there are no Bangko Sentral regional/clearing arrangements may set a clearing cut-off time not earlier than two (2) hours before the start of their local clearing after which time, deposits received shall be booked likewise as hereinafter provided.

Definitions. As used in this Section, the following terms shall have the following meanings:

Regular banking hours shall refer to the banking hours reported to the Bangko Sentral pursuant to Sec. 108, including the extended banking hours reported for servicing deposits and withdrawals.

Clearing cut-off time shall mean the bank’s closing time for the acceptance of deposits in the form of checks, bills and other demand items for clearing on the day of their receipt.

Booking of cash deposits. Cash deposits received after the selected clearing cut-off time until the close of the regular banking hours shall be booked as deposits on the day of receipt.

Booking of non-cash deposits. Deposits of checks including “on us” checks, manager’s/ cashier’s/treasurer’s checks and demand drafts, which are drawn against the depository bank and all its offices, as well as treasury warrants and postal money orders, received after the selected clearing cut-off time until the close of the regular banking hours, may, at the option of the bank, be booked as deposits on the day of receipt.

Other non-cash deposits received after the selected clearing cut-off time shall be treated as contingent accounts on the day of receipt and shall be booked as deposits the following banking day.

Booking of deposits after regular banking hours. Deposits, whether cash or non-cash, received after the close of the regular banking hours shall be treated as contingent accounts on the day of receipt and shall be booked as deposits the following banking day.

Other records required. For record and control purposes, banks shall prepare a daily abstract of deposit transactions treated as contingent accounts.

Notice required. Banks shall post at a conspicuous place near each teller’s window a notice to depositors indicating their selected clearing cut-off time and a statement to the effect that non-cash items deposited after said cut-off time shall be treated as transactions for the next banking day.

(Circular No. 987 dated 28 December 2017)