Framework for Basic Deposit Accounts

Liberalized customer onboarding through simplified Know-Your-Customer (KYC) procedures for low-risk customers.
Customer identification can be based on any document or reliable source deemed sufficient.
Opening deposit amount capped at P100.00.
No minimum maintaining balance required.
No dormancy charges imposed.
Maximum account balance capped at P50,000.00.
Upon exceeding P50,000.00, the account converts to a regular deposit account.
Reserve requirement for basic deposit accounts is set at 0%.
Banks must implement written policies, procedures, and controls to ensure due diligence and compliance with relevant rules and regulations.

Basic deposit accounts have a zero percent (0%) reserve requirement for Universal Banks (UBs), Commercial Banks (KBs), Thrift Banks (TBs), Rural Banks (RBs), and Cooperative Banks.

Demand Deposit defined as deposits withdrawable via check or ATM, may or may not earn interest.
Savings Deposit includes:
1. Regular savings account (interest-bearing).
2. Kiddie and teen savings account for minors up to 19 years old, interest-bearing, initial deposit minimum of P100, no maintaining balance requirement.
3. Basic deposit account as defined above.
4. Other savings accounts offering tiered interest rates generally higher than regular savings accounts.

Micro-deposits are now classified as basic deposit accounts under Section X222.
Other microfinance-related definitions and features remain consistent with the framework.

Updated references to deposit products to align with definitions in Section X222.
Clarifies definitions of kiddie and teen savings accounts and basic deposit accounts in reporting requirements.

Guidelines for implementing reporting structures and electronic data submission protocols to be issued separately.

Circular takes effect fifteen (15) calendar days after publication in the Official Gazette or a newspaper of general circulation.