October 22, 2009

BSP CIRCULAR NO. 669-09

 

The Monetary Board, in its Resolution No. 1422 dated 02 October 2009, approved the amendment of Section X151 of the Manual of Regulations for Banks on the definition of "other banking office" to read as follows: aCASEH

"Other banking office' shall refer to any permanent office or place of business in the Philippines other than the head office, branch or extension office, which primarily engages in banking activities other than the acceptance of deposits and/or servicing of withdrawals thru tellers or other authorized personnel. It shall include loan collection and disbursement points (LCDPs) of microfinance-oriented banks and microfinance/barangay microbusiness enterprise (BMBE)-oriented branches of banks which may accept savings deposits solely from and service withdrawals of existing microfinance/BMBE borrowers, subject to the following conditions:

a. The aggregate amount of withdrawals to be serviced by the LCDP for the day shall be limited to the total collections of the LCDP for the day;

b. The servicing of withdrawals by the LCDP shall apply only to savings deposit accounts not covered by "no passbook withdrawal" system or automated teller machine (ATM) system of the bank; and

c. The bank shall observe adequate internal control procedures to ensure the safety of funds and reliability of financial records and reports, including the required presentation of passbook and the accomplishment of necessary withdrawal slips as provided in Section X214, among others;

Provided, That account openings and other banking transactions of said microfinance/BMBE borrowers shall be done only at the head office/branches/extension offices or thru automated teller machines (ATMs), as may be applicable."

This Circular shall take effect fifteen (15) days following its publication either in the Official Gazette or in a newspaper of general circulation. aCcADT

FOR THE MONETARY BOARD:

(SGD.) AMANDO M. TETANGCO, JR.GovernorBangko Sentral ng Pilipinas