Title
Use of POD for Dormancy Fee s
Law
Bsp Circular No. 498
Decision Date
Nov 22, 2005
BSP Circular No. 498 mandates that banks must inform depositors of dormant account fees via registered mail or Proof of Delivery service at least 60 days prior to imposing such fees, ensuring transparency and proper notification.

Authority and legal basis

  • The Monetary Board issues BSP Circular No. 498 through an amendment to the MORB.
  • The amendment is made specifically to Section X263 of the MORB.

Amendment to dormancy fee notice rule

  • Section 1 amends Paragraph (e) of Section X263 of the MORB.
  • For charges and fees for dormant accounts or dormancy fee, the period of dormancy under Subsec. X163.12 must be properly disclosed among the terms and conditions of the deposit.
  • Depositors must be informed before dormancy fee is imposed by sending notice to the depositor’s last known address.
  • The notice must be sent at least sixty (60) days prior to the imposition of dormancy fee.
  • Notice must be sent by registered mail with return card or by PROOF OF DELIVERY (POD) service.
  • The PROOF OF DELIVERY (POD) service may be provided by the Philippine Postal Corporation and other mail couriers.
  • The amended rule requires using POD service as an alternative to registered mail with return card for informing depositors regarding impending dormancy fees.

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