Pursuant to Monetary Board Resolution No. 754 dated 17 June 2008, the Manual of Regulations for Banks (MORB) is hereby amended as follows:

Section X266. Deposit Pick-up/Cash Delivery Services. The following are the guidelines on the deposit pick-up/cash delivery services of banks;

a. As a general rule, deposit pick-up cash delivery services shall be limited to the following:

(1) To service the need of valued clients whose daily average deposit amounts to:

P500 thousand - for Metro Manila and Metro Cebu clients/depositors P300 thousand - for outside Metro Manila and Metro Cebu clients/depositors

(2) To be serviced during regular banking hours and days only, unless the nature of the business and the volume of the deposits/cash would warrant servicing beyond regular banking hours and days, in which case justification therefore should be submitted to the satisfaction of the appropriate SUPERVISING DEPARTMENT OF THE SUPERVISION AND EXAMINATION SECTOR [CEN-. TRAL POINT OF CONTACT DEPARTMENT (CPCD) I, CPCD II, INTEGRATED SUPERVISION DEPARTMENT (ISD) I, AND ISD II].

b. Prior BSP authority is not required before banks can engage in deposit pick-up/cash delivery services provided, the following conditions are complied with:

(1) Pick-up of deposits/cash delivery shall be made with the use of armored cars, which shall not be operated as a mobile bank used in soliciting deposits from the general public, or in any manner in carrying out banking transactions/ services other than to afford security of deposit/cash items in transit;

(2) Pick-up of deposits/cash delivery may be made with the use of non-armored vehicles in the following cases/circumstances:

(a) On an unscheduled request; Provided, That:

i. all armored vehicles have already been fielded and the request has to be served immediately; and

ii. it is within a five (5) kilometer radius of a servicing banking office,

(b) In rugged terrain/mountainous roads or roads not suitable for heavy armored vehicles;

(c) In critical or re be I-infested areas where there are peace and order problems as certified by the local police authorities; and

(d) In island provinces where the transport of cash to a branch or office may be made only with the use of a ferry boat:

Provided, That the non-armored vehicles are equipped with dual control safe and supported with adequate security back-up. Their movements may be coordinated with law enforcement authorities.

(3) The risk of loss involved in the pick-up of deposits/cash delivery shall be adequately covered by insurance, and the armored car/non-armored car to be used shall be provided, with at least two (2) armed guards and supervised by at least two (2) officers of the ban k;

(4) The deposit/cash delivery transactions shall be booked in accordance with existing regulation;

(5) The strictest measure of safeguards, control and confidentiality will be adopted in implementing the services;

(6) A separate record/log book for each armored car/non-armored car shall be maintained by the bank which shall contain the information on the deposit pick up/cash delivery activities of the armored car/non-armored car to be supported by "trip tickets" signed by a responsible officer of the bank;

(7) Records and/or such other reports that may be required of the bank from time to time shall be made available for examination/inspection by the authorized representative(s) of the appropriate supervising/EXAMINING department of the BSP DURING 0NS1TE EXAMINATION, and

c. If the use of the non-armored car under "b(2)(a)" becomes regular, the bank shall engage an armored car to take its place. Regularity shall mean daily (i.e., regular banking days) or periodic (e.g., every 15th or end of the month) servicing of a valued client within a three (3) month period.

d. PICK-UP OF DFPOSITS/CASH DELIVERY SERVICES TO BE MADE ON DAYS OTHER THAN THE BANK'S REGULAR BANKING DAYS SHALL BE ALLOWED WITHOUT PRIOR BSP AUTHORITY; PROVIDED, THAT ANOTARIZED CERTIFICATION (USING THE FOR MAT SHOWN IN APPENDIX ) STATING THAT THE BANK COMPLIES WITH ALL THE CONDITIONS SET FORTH IN SECTION X266 OF THE MORB (DEPOSIT PICK-UP/CASH DELIVERY SERVICES), JOINTLY SIGNED BY THE BANK'S EXECUTIVE VICE PRESIDENT OR ITS EQUIVALENT POSITION AND BY THE BANK'S COMPLIANCE OFFICER, SHALL BE SUBMITTED TO THE APPROPRIATF SUPERVISING DEPARTMENT OF THE SUPERVISION AND EXAMINATION SECTOR [CENTRAL POINT OF CONTACT DEPARTMENT (CPCD) I, CPCD II, INTEGRATED SUPERVISION DEPARTMENT (ISD) I, AND ISD II] AT LEAST FIVE (5) BANKING DAYS BEFORE BANK'S INTENDED STARTING DATE OF ITS DEPOSIT PICK-UP/CASH DELIVERY SERVICES BEYOND REGULAR BANKING HOURS AND DAYS TO CLIENTS.

e. If any of the above conditions IS not met, the BSP may suspend the deposit pick-up/ cash delivery operations of the bank without prejudice to the imposition of sanctions under Section 37 of R.A. No. 7653.

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

Adopted: 14 July 2008

FOR THE MONETARY BOARD:

(SGD.) AMANDO M. TETANGCO, JR.
Governor