QuestionsQuestions (BSP CIRCULAR NO. 498)
To amend the Manual of Regulations for Banks (MORB) to allow Proof of Delivery (POD) service of the Philippine Postal Corporation and other mail couriers as an alternative mode of informing depositors about impending dormancy fees, instead of requiring registered mail with return card.
Paragraph (e) of Section X263 of the MORB.
It requires banks to (1) properly disclose the dormancy period prescribed under Subsec. X163.12 among the terms and conditions of the deposit, and (2) inform depositors of the impending dormancy fee.
The period of dormancy as prescribed under Subsec. X163.12 must be properly disclosed among the terms and conditions of the deposit.
Depositors must be informed on their last known address at least sixty (60) days prior to the imposition of the dormancy fee.
Either registered mail with return card, or Proof of Delivery (POD) service of the Philippine Postal Corporation and other mail couriers.
The circular specifies that the depositor must be informed at his or her last known address; notice delivered to an address not considered “last known” may not satisfy the requirement.
At least sixty (60) days prior to the imposition of the dormancy fee.
POD stands for Proof of Delivery. It is provided by the Philippine Postal Corporation and other mail couriers.
Yes. The circular explicitly allows registered mail with return card as an acceptable method, and adds POD as an alternative.
Monetary Board Resolution No. 1392 dated 27 October 2005.
Fifteen (15) days following its publication either in the Official Gazette or in a newspaper of general circulation.
The circular itself does not state a specific penalty or consequence, but the failure would likely be a violation of the MORB requirement to properly disclose the dormancy period as part of terms and conditions, potentially exposing the bank to regulatory action.
Section X263(e) references Subsec. X163.12 by requiring the period of dormancy prescribed there to be properly disclosed in the deposit’s terms and conditions.
The bank should have proof of delivery (POD records/receipts) showing delivery to the depositor’s last known address at least sixty (60) days before dormancy fees are imposed.
Both, practically. It modifies bank compliance requirements (notice mode and timing) and affects depositor protections by specifying acceptable notice methods and ensuring advance notice before imposing dormancy fees.
It was signed by Amandо M. Tetangco, Jr., then Governor of the Bangko Sentral ng Pilipinas.