FASTER check clearing will start today (Friday) as the Check Image Clearing System (CICS), a reform initiated by the central bank, goes online.
In a statement on Thursday, the Bangko Sentral ng Pilipinas (BSP) said the Philippine Clearing House Corp. (PCHC) is set to implement the clearing of checks via electronic through the CICS.
“Under the CICS, only the digital images of checks and their electronic payment information will be transmitted to the paying bank, allowing a shorter turnaround time for funds to be credited to the depositors’ accounts,” it said.
According to the PCHC, depositors who transact with CICS-compliant banks may withdraw on the next banking day against their validated check deposits.
Banks that are still on paper-based check processing will continue to render the service under existing timelines, the BSP said.
“The public is likewise encouraged to get in touch with their banks about the new system and reminded on how to properly prepare checks under the CICS,” it said.
To achieve faster transition to the new process, the BSP is enjoining the non-CICS-compliant banks to take necessary measures to meet the technical requirements electronic check clearing.
The implementation of CICS forms part of the reforms it espoused to achieve a more efficient and safe payment system as this is critical to the promotion of the country’s financial stability, the central bank said.