Law Summary
Qualifying Criteria for Banks
- Banks must have total resources of at least P100 million.
- Net assets should be at least P10 million or meet the minimum capital required under current regulations, whichever is higher.
- Net-worth-risk assets ratio must not be deficient.
- Past due loan ratio must not exceed 15%.
- No past due obligations with Bangko Sentral or other government financial institutions.
- Banks must demonstrate continuous profitability.
- Full compliance with law and BSP rules and regulations is mandatory.
Procedural Requirements for Rural/Cooperative Banks
- Submission of a detailed justification for providing the service including:
- Names of clients/companies, daily average deposit, and proximity.
- Information on other banks or branches in the area.
- Written agreement with clients outlining responsibilities.
- Services subject to strict operational conditions.
Operational Conditions and Safeguards
- Deposit pick-up generally must use armored cars.
- Armored cars cannot function as mobile banks or solicit deposits.
- Risk of loss must be covered by insurance.
- Each armored car to have at least two armed guards and supervised by at least two bank officers.
- Deposit transactions must be booked following existing regulations.
- Pick-ups only on regular banking days.
- Strict safeguards, controls, and confidentiality measures are mandatory.
- Banks must maintain detailed log books and trip tickets for deposit pickups.
- Records and reports must be available for BSP examination.
- Non-compliance results in sanctions under applicable laws and BSP rules.
Special Provisions on Use of Armored Cars
- Armored cars are exclusively for secure collection and delivery of cash, securities, and valuables.
- Armored cars must not be operated as mobile banks.
Effectivity
- The provisions became effective immediately upon issuance.
This circular ensures the secure and regulated conduct of deposit pick-up services by banks, emphasizing client eligibility, bank qualifications, procedural diligence, operational security, and regulatory compliance.