BSP CIRCULAR NO. 334, S. 2002, JUNE 5, 2002

: The main subject is the regulation on temporary overdrawings and drawings against uncollected deposits in banks, specifically amending Section X202.a of the Manual of Regulations for Banks.
: Temporary overdrawings against current accounts are not allowed unless they are caused by normal bank charges and other fees incidental to handling such accounts.
: Banks that violate the regulation are subject to a fine of 1/10 of 1% per day of the violation, computed based on the amount of overdrawing, or fines as determined by the Monetary Board, but not to exceed Thirty thousand pesos (P30,000) a day for each violation, whichever is lower.
: BSP Circular No. 334, S. 2002 took effect immediately upon its adoption on June 5, 2002.
: It refers to overdrawings against current accounts that occur temporarily, but which are generally disallowed unless due to normal bank charges and fees incidental to managing accounts.
: The amendment was made pursuant to Monetary Board Resolution No. 618 dated April 25, 2002.
: The fine is 1/10 of 1% per day of the amount of overdrawing, or imposition of fines determined by the Monetary Board, limited to a maximum of P30,000 per day per violation.
: While the circular title references drawings against uncollected deposits, the excerpt focuses mainly on temporary overdrawings against current accounts and their regulation and penalties.
: The amendment was made under Section X202.a of the Manual of Regulations for Banks.