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Regulations governing fees on dormant deposit accounts

THE Bangko Sentral ng Pilipinas (BSP) recently issued Memorandum M-2017-025 which reminds all banks and non-stock savings and loans associations (NSSLAs) on the compliance with the regulations governing fees on dormant deposit accounts.

Under the memorandum, banks and NSSLAs may only impose a monthly dormancy fee not exceeding P30 on a dormant deposit account, with a deposit below the minimum monthly average daily balance, and which has not been deposited to or withdrawn from for the last five years.

Banks and NSSLAs must also comply with notice requirements set by BSP by notifying depositors at least 60 days before his account becomes dormant and at least 60 days before his account is charged with dormancy fees.

The notice must contain the effect of dormancy to transfer the account from active to dormant status, advice on how to reactivate the account and reminder that the dormant account will be included in the list of unclaimed balances to be submitted to the Treasurer of the Philippines.

Failure to comply with foregoing regulation on dormancy fees will subject the responsible banks and quasi banks to applicable sanctions and penalties provided under Section X299 of the Manual of Regulations for Banks and Section 42995 of the Manual of Regulations for Non-Bank Financial Institutions.

For more details, refer to BSP Memorandum M-2017-025 and BSP Circular No. 928 Series of 2016.

Source: P&A Grant Thornton


As published in Sunstar Cebu dated 19 September 2017.