Question & AnswerQ&A (CIRCULAR NO. 992)
A Basic Deposit Account is an interest- or non-interest-bearing account designed to promote financial inclusion, enabling Filipinos, especially the unserved and underserved, to receive and make payments and store value, with features like ease, accessibility, convenience, and reasonable cost.
The minimum key features include liberalized customer onboarding with simplified KYC for low-risk customers, an opening amount not more than P100, no minimum maintaining balance, no dormancy charges, a maximum balance of P50,000, and a 0% reserve requirement.
The maximum balance allowed is P50,000. Should the deposit exceed this amount, the bank must convert the basic deposit account into a regular deposit account.
No, there are no dormancy charges imposed on Basic Deposit Accounts.
Banks may use any document or information reduced in writing deemed sufficient to establish a customer's identity, including simplified KYC for low-risk customers or other reliable, independent source documents, data, or information as per Section X803 of the MORB.
Basic Deposit Accounts have a 0% reserve requirement.
Basic Deposit Accounts can be interest- or non-interest-bearing and focus on financial inclusion with simplified features and low maximum balance; regular savings accounts are interest-bearing, while kiddie/teen accounts are interest-bearing accounts for children and teens with an initial deposit of P100 and no minimum balance requirement.
The Circular took effect fifteen (15) calendar days after its publication in the Official Gazette or a newspaper of general circulation.
Banks must adopt clearly-defined written policies, procedures, and controls to ensure due diligence and compliance with applicable rules and regulations.
Yes, Basic Deposit Accounts are included in the savings deposit category in the bank's Financial Reporting Package as defined in the amended Manual of Accounts under Subsection X191.2 of the MORB.