Retention of Existing Procedures on Deposits and Withdrawals

BANEXO SeNrneL NG PILIPINAS OFFICE OF THE GOVERNOR MEMORANDUM NO. M.2021- OO4 To ALL AUTHORIZED AGENT BANKS Subject : RETENTION OF EXISTING PROCEDURES ON DEPOSITS AND WITHDRAWALS Pursuant to BSP Circular No. 1106, Series of 2020, the amendments to the Manual of Regulations for Banks (MORB) on the (a) restructuring of service fees for banks' deposit and withdrawal transactions with the Bangko Sentral, (b) reinstatement of the service fees on new and fit banknote withdrawals, (c) provision of rebates, refunds, and incentives for unfit banknote deposits, and (d) imposition of a penalty for cancelled withdrawal transactions shall take effect on 1.3 January 2O2L Accordingly, the Guidelines and Procedures Governing Currency Deposits and Withdrawals of Banks for Credit to and Debit from their Demand Deposit Accounts with the Bangko Sentral (Appendix 84 of the MORB, Annex A) shall remain effective. Further, please be advised that the following procedures shall also govern deposit and withdrawal transactions of authorized agent banks (AABs) with the Bangko Sentral: A. For transactions with the Cash Department (CD) of the Payments and Currency Management Operations Sub-Sector (PCMOSs)1 L. AABs shall issue a letter of authority in favor of the Bangko Sentral, through the PCMOSs, to debit their respective Demand Deposit Accounts (DDAs) maintained with the Bangko Sentral, for the service fee on their transactions on the day of deposit/withdrawal. 2. AABs shall prepare separate deposit slip/s for new/fit, mixed and unfit notes, which will serve as basis for the imposition of applicable service fees for new/fit and mixed notes. B. For transactions with the BSP Regional Offices and Branches {ROBs) of the Regional Operations Sub-sector (ROSs)2 1. AABs shall issue a letter of authority in favor of the Bangko Sentral, through ROSs, to debit their respective DDA maintained with the Bangko Sentral for the service fee on their transactions on the day of deposit/withdrawal. 1 Per Monetary Board Resolution No. 1659 dated 17 December 2020 (formerly Currency Management Sub-Sector ICMSS] and Metro Manila Currency Operations Sub-Sector IMCOSS]) 2 Formerly Regional Monetary Affairs Sub-Sector (RMASS) A. MabiniSt,, Malate 1004 l"4anila, Philippines. (6321 87087701 . www.bsp.gov.ph o [email protected]

2. AABs shall continue to prepare separate deposit slip/s for fit and unfit notes, which will serve as the basis for the imposition of applicable service fees for fit notes. 3. The BSP ROBs shall accept deposit of bundled fit notes packed in sealed plastic containers in uniform quantity of twenty (20) bundles of one (1) or various denominations. ea-c. -\ --\ BENJAMIN E. DIOKNO Governor fl' January 2O2L Page2 ol 2