January 24, 2011 – Revised Check Clearing and Settlement Process Circular 681 of the Bangko Sentral ng Pilipinas

As per BSP Cir. 681, effective January 24, 2011, ALL banks are required to return all checks with insufficient funds to the presenting bank through the Philippine Clearing House Corp. (PCHC) by 7:30am of the next banking day from the date of presentment of the check deposit. This new process means that checking account holders will not have the chance to fund incoming checks on the 2nd banking day after the check is presented for clearing.

All checking account holders are advised to manage their account prudently and ensure that their checking account has already sufficient cleared balance on the day of issuance in order to prevent any incovenience and penalty charges.

In compliance with the new circular, Equicom Savings Bank (EqB) will continue to implement the following:

• No temporary overdrawings against demand deposit accounts will be allowed.
• All checks drawn against insufficient funds will be returned with the corresponding penalties charged to the account holder.
• No drawing of funds against uncollected deposits (DAUD) will be allowed.

We trust that this early information will assist you in the preparation for this new mandate.

Your branch of account will be glad to address any query or need for clarification that you may have.

Thank you very much for your continued support.