PHL banks on track to use electronic check clearing

The Philippine banking system is on track to fully migrate check clearing operations to an electronic system by January 2017, shrinking the clearing time to one day from the current practice of three to five days, officials said on Monday.

“In terms of preparation, the banks are doing their best to meet the January cutover date. Banks are busy transitioning, preparing all their branches to acquire scanners, establish connections,” Philippine Clearing House Corp. (PCHC) President and CEO Emmanuel Barcena told reporters in a briefing.

“Banks have been preparing since early this year. They’re really trying their best to meet the BSP-set cutover date,” he added.

The Check Image Clearing System (CICS) is expected to be fully implemented on January 20, 2017.

The shift was announced by BSP Governor Amando M. Tetangco Jr. and PCHC Chairman Abraham T. Co in July as a major move to cut the clearing process from the usual three to five days to one day.

Banks have acquired the necessary software and hardware that would enable the shift toward an electronic system starting next year, said BSP Sector-in-Charge Johnny Noe E. Ravelo.

The migration rests entirely on the fact that banks would have the necessary equipment, including software and hardware, he said.

After the transition, banks would still accept old checks for clearing but only until June 30, 2017, he added. — VDS, GMA News