Guidelines on Disposal and Retention of Records

Disposal of records cannot proceed without prior approval from the bank’s board of directors.
Banks must submit a formal notice for disposal to the Department of Rural Banks (DRB) using the prescribed form, including the date and list of records to be disposed.
The notice must be submitted within 10 banking days after board approval.
A certified copy of the board resolution authorizing disposal must accompany the notice.
If no objection is received from the DRB within 30 banking days, the bank may proceed with disposal.

Records must be destroyed by burning or shredding in the presence of three authorized persons: a designated director, the Chief Operating Officer or equivalent, and the Compliance Officer.
These individuals must prepare and execute a joint affidavit attesting to the proper destruction of the records.
The affidavit originals and triplicate must be retained permanently by the bank’s Treasurer or Cashier.
One copy of the affidavit must be submitted to the DRB within 10 banking days following destruction.

The guidelines prescribe strict compliance with the outlined procedures and retention periods, emphasizing accountability and transparency in the management of rural/cooperative bank records.
The guidelines were officially adopted on March 13, 2002, underscoring their regulatory significance to rural/cooperative banks under BSP supervision.