BSP rules on temporary overdrawing

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BSP CIRCULAR NO. 334, S. 2002, JUNE 5, 2002: BSP rules on temporary overdrawing

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Title Supreme Court: BSP rules on temporary overdrawing

Law: Bsp Circular No. 334, S. 2002, June 5, 2002

Decision Date: Jun 5, 2002

BSP Circular No. 334, effective June 5, 2002, prohibits temporary overdrawings against current accounts unless due to normal bank charges, imposing fines for violations based on the amount overdrawn.

uncollected deposits

bank regulations

A

Prohibition on Drawing Against Uncollected Deposits

While not explicitly detailed in the provided excerpt, the section title includes provisions on drawings against uncollected deposits, implying restrictions on such transactions.

Penalties for Violation

Banks violating the regulations on temporary overdrawings are subject to a daily fine.
The fine amounts to one-tenth of one percent (0.1%) per day of the amount overdrawn.
Alternatively, the Monetary Board may impose fines as it deems appropriate, but fines shall not exceed Thirty Thousand Pesos (P30,000) per day per violation.
The lower amount between the calculated percentage fine and the maximum cap applies.

Scope and Immediate Effectiveness

The regulation amends Section X202.a of the Manual of Regulations for Banks.
The Circular and the rules herein become effective immediately upon issuance.

Governing Authority and Adoption

The provisions were adopted pursuant to Monetary Board Resolution No. 618 dated April 25, 2002.
The Circular is signed and issued by Alberto V. Reyes, Officer-in-Charge of the Bangko Sentral ng Pilipinas (BSP).

END