Stringent rules on check clearing to start in 2016

CEBU, Philippines – The Cebu Bankers Club announced that banks will no longer accept checks with erasures, alterations or deficiencies for clearing starting next year.

CBC President Maximo S. Eleccion said yesterday this is effective starting January 4, 2016.

In a public advisory it released to the media yesterday, CBC said this is in accordance to a memo order released by the Philippine Clearing House Corp. (PCHC) mandating the non-acceptance of checks bearing erasures and corrections on: date, name of payee, amount in words and figures, account name and number, signatures and check number.

PCHC already issued guidelines on the new mandate, making clear rules on altered checks.

PCHC is a private corporation co-equally owned by all commercial banks enlisted as members of the Bankers Association of the Philippines (BAP).

The CBC further said checks not acceptable also for clearing are those that do not indicate the following: date, name of payee, amount payable in figures, amount payable in words (except if issued as manager's or cashier's checks or demand drafts using a check writer) and signatures. — Carlo S. Lorenciana (FREEMAN)