No Erasures Guidelines on Checks to Ensue this January 2016
October 5, 2015
Soon, banks will no longer accept checks with erasures or corrections on them, even if they are countersigned.
Because of the unclear guidelines as to the rules behind altered checks among member banks, PCHC or the Philippine Clearing House Corporation has issued guidelines on the non-acceptance of checks with any kind of alteration.
Signed by PCHC president and CEO Emmanuel E. Barcena, these new guidelines will take effect on the 4th of January 2016.
According to these guidelines, banks will no longer accept checks with erasures or alterations on any of the information on the checks, such as the date, name of payee, amount in figures, amount in words, signatures, account name and number, and check number.
According to Manila Bulletin, “Banks will also refuse any checks that does not include required information, except for amount payable in words if issued as manager’s or cashier’s checks, or demand drafts using a check writer.”
Barcena stated that “any check with alterations will no longer be eligible or acceptable for clearing, except post-dated checks.” But warehouse checks and PDCs need to be stamped accordingly.
“It is understood that any alteration or erasure on a check which is not visible does not excuse the presenting bank from liability for loss or damage attributable to the alteration,” he added.
The final recommendation of a technical working group has been approved by PCHC. This group comprises of all banking associations led by the Bankers Association of the Philippines.
The newly added “no erasures” security measure is part of the security proposal included in the check truncation system and check image clearing system (CTS and CICS) that PCHC will be implementing. These new guidelines will shorten clearing from three days to one.
Source: Chipongian, Lee (2015, September 2).