Framework for Basic Deposit Accounts

BANGKO SeNrnnL NG PII.IpINAS OFFICE OF THE GOVERNOR CIRCULAR NO. 992 Series of 2018 Subject Framework for Basic Deposit Accounts The Monetary Board, in its Resolution No. 58 dated 11 January 20L8, approved the following amendments to the Manual of Regulations for Banks (MORB) to introduce the framework for basic deposit accounts that can promote financial inclusion, consistent with the Bangko Sentral's thrust to advance universal access to formal financial products and services. Section 1. Section X222 of the MORB is hereby added to establish a basic deposit account, as follows: "Sec,X222 Basic Deposit Account. A bosic deposit occount refers to interest- or non-interest-bearing account designed to promote financial inclusion. This account will enable Filipinos, especially the unserved and underserved, to receive and make payments, as well as have a facility for store of value. lt will have the basic functionalities that will characterize ease, accessibility, convenience, and reasonable cost for both banks and customers. Banks shall be given the liberty to customize their product offerings based on the needs of the identified market: Provided, That banks adopt the following minimum key features of a basic deposit account: Features Liberalized customer Follows simplified Know-Your-Customer (KYC) for low onboarding risk customers, wherein identifying the customer and verifying their true identity may be based on any document or information reduced in writing which the covered person deems sufficient to establish customer's identity as provided under ltem "w" ot Sec. X803 of the MORB, or other reliable, independent source documents, data, or information. Opening amount Not more than P100.00 Minimum maintaining None balance A. tulaLrini Sl., l",1a1ale 1{r0+ Manila, t}.li;ippilles . ii:}2i 708-i/C1 . wy"'sr.bsp gr:v.r:h . hsprnail.Sbsp.li>ov.ph

Features Dormancy charges None Maximum balance Not more than P50,000.00; Should the depositor exceed the P50,000.00 maximum balance, the bank should convert the basic deposit account to a regular deposit account Reserve requirement o% In offering the basic deposit account, banks shall adopt clearly-defined written policies, procedures and controls to ensure due diligence and compliance with applicable rules and regulations." Section 2. Subsection X253.1 of the MORB on the required reserves against deposit and deposit substitute liabilities is hereby amended to read, as follows: "Subsec. X253.1 Required reserues agoinst deposit ond deposit substitute liobilities. xxx UBs/KBs TBs RBs/Coop Banks xxx m. Basic deposit accounts, as O o/o o% o% defined in Sec. X222 of the MORBl xxx" Section 3. The following portions of the Financial Reporting Package (FRP) required under Subsection XL9L.2 of the MORB shall be amended as indicated below: MANUAL OF ACCOUNTS 'BALANCE SHEET ACCOUNTS xxx 3. Deposit Liabilities XXX ^ The required reserves for banks shall take effect starting reserve week 23 February 2018. Page 2 ol 4

(a) Demand Deposit - This refers to deposits, subject to withdrawal by check thru available bank channels and/or thru the automated tellering machines (ATM) which are otherwise known as current or checking occounts. The bank may or may not pay interest on these accounts. (b) Sovings Deposit - This refers to interest- or non-interest-bearing deposits which are withdrawable upon demand thru available bank channels. (1) Regulor sovings occount - refers to interest-bearing account which is withdrawable either upon presentation of a properly accomplished withdrawal slip together with the corresponding passbook or thru automated tellering machine. (21 Kiddie and teen savings occount - refers to interest-bearing savings account of children and teens up to nineteen (19) years old with an initial deposit of P100 and no minimum maintaining balance requirement. (3) Bosic deposit account - refers to interest- or non-interest-bearing account designed to promote financial inclusion. (4) Other sovings occount - refers to interest-bearing special savings account which offers tiered interest rates depending on the size of deposit. lt usually carries higher interest rate compared to the rate for regular savings account. xxxtt Section 4. ltems F to I of Appendix 45 on the Notes on Microfinance are hereby amended to read as follows: "xxx F. Definition ond general features of microfinonce sovings deposit occounts or micro-deposits Micro-deposits shall now be referred to as basic deposit accounts under Sec.X222 of the MORB. G. Definition of microinsuronce xxx H. Generalfeotures of o microinsuronce product xxx xxx"

Section 5. Appendix 705 on the guidelines on reportorial requirement for bank interest rates will be amended to denote reference to the definitions used for deposit products in Section X222 as follows: ,,GUIDELINES ON REPORTORIAL REQUIREMENTS FOR BANK INTEREST RATES (Appendix to Subsec. X149.8) XXX o. b. c. Kiddie ond teen sovings account refers to interest-bearing savings account of children and teens up to nineteen (19) years old with an initial deposit of P100 and no minimum maintaining balance requirement. d. Bosic deposit occount refers to interest- or non-interest-bearing account designed to promote financial inclusion, as defined in Sec. X222. e. Other peso sovings occount xxx XXX,, Section 6. The corresponding guidelines to implement the relevant reporting structures and dissemination of the accompanying data entry templates including the procedures for electronic submission shall be covered by a separate issuance. Section 7. Effectivity. This Circular shall take effect fifteen (15) calendar days following its publication either in the Official Gazette or in a newspaper of general circulation. FOR THE MONETARY BOARD Governor ol February 2018