Check Image Clearing System

Can the check depositor still get the original check in case it is dishonored?

Yes, the original copy of the dishonored check shall be returned to the depositor with the reason for return stamped on it.

Can the depositor still re-clear a dishonored check?

The depositor of the dishonored check may re-clear it but there are some cases where the returned check can no longer be re-cleared, like when the check is dishonored for having been drawn against a “closed account.”

What are the benefits of implementing CICS?

  • Faster availability of funds to payees/beneficiaries
  • Faster feedback, allowing you to know whether the check is funded or not by the next business day
  • Improved security in deterring fraud and against loss or tampering of checks in transit
  • Wider checks presentment window within the business day as deposit cut-off may be extended
  • Faster turnaround time on service requests

What are the major changes that come with the shift to CICS?

  • With the implementation of the CICS, checks will have the following features as prescribed by the PCHC
  • Standardized length of 8 inches for both Corporate/Government and Private/Individual checks
  • A waiver that states I/We allow the electronic clearing of this check and hereby waive the presentation for payment of this original to (Drawee Bank)
  • Embedded mandatory security features
  • Checks with old features will only be accepted until JUNE 30, 2017, except for post-dated checks warehoused by the presenting banks until December 31, 2016.
  • Any check with missing information or alteration will no longer be eligible or acceptable for clearing, even if countersigned
  • The use of a check writer to affix the amount in the “amount in figures” line is no longer allowed unless the amount in words is written below it. 

What is this Check Image Clearing System?

Check Image Clearing Systems (CICS) is the new automated clearing system operated by the Philippine Clearing House Corporation (PCHC), where information on the check and its image are digitally captured by the Bank receiving the check deposit and presented electronically to the paying Bank. This eliminates the need to physically transport paper checks for clearing. 

What will happen to paid/honored checks?

Paid/honored checks will no longer be given back to the drawer/issuer and will just be kept by the presenting/collecting bank for a period of six (6) months. The drawer/issuer will be provided with the image reproduction of the paid/honored check in their monthly statement of account.

Why are we shifting to CICS?

Shifting to CICS is the initiative of the Banking Industry and PCHC with support from BSP.  It is primarily aimed at providing better service to the banking public.

This specifically aims to make the check clearing process faster, more efficient and secured. Its primary objective is to shorten the clearing cycle, making funds available the next banking day instead of the traditional 3 to 5 days.