Separate Clearing Windows for Local Exchanges
- Two clearing windows exist in Metro Manila and BSP Regional Clearing Centers (RCCs): AM and PM returned COCI clearing.
- AM returned COCI clearing occurs from 7:30 AM to 10:00 AM in Metro Manila and 8:00 AM to 9:30 AM in RCCs the banking day after original presentation.
- Returned COCI in AM clearing is valued on the original presentation date, reversing debits and credits to restore demand deposit balances.
- PM returned COCI clearing coincides with regular afternoon clearing for dishonored COCI not returned in AM clearing.
- PM returned COCI is valued on the date presented during afternoon clearing.
Return Deadlines for Out-of-Town Exchanges
- Drawee banks must return dishonored COCI within periods specified by BSP clearing circulars.
Handling of COCI Not Cleared Through the System
- Dishonored COCI not processed via clearing must be returned by drawee bank to holder or negotiating bank by next business day after presentation for payment.
- Negotiating bank must return dishonored COCI to holder by the next business day after receipt from drawee bank.
Interbank Call Loans Fund Transfer System Instructions
- Borrowers and lenders send separate IBCL fund transfer instructions via PCHC using confidential IDs and passwords.
- PCHC authenticates and matches instructions for correctness and approval from authorized officers.
- Matching verifies transaction details: amount, interest rate, tenor, maturity date, value date, and collateral if applicable.
- Authentication and matching occur daily from 11:30 AM to 12:30 PM.
- Authenticated transactions are not considered settled until compliance with unwinding rules.
Settlement Process for Interbank Call Loans
- BSP acts only on automated summaries of IBCL instructions signed by PCHC authorized officers.
- BSP posts net results immediately for updated DDA statements by 2:00 PM on the business day following the transaction value date.
- Business day defined by availability of services per agreement.
- Insufficient funds in demand deposit accounts (DDA) trigger Last In, First Out (LIFO) unwinding of transactions.
Rules on LIFO Unwinding of Transactions
- Lending instructions are unwound before repayment transactions using LIFO.
- Unwinding applies to entire transaction amount; no partial unwinding allowed.
Effectivity
- The Circular and its amendments take effect on November 15, 1999.