The  Monetary  Board,  in  its  Resolution  No.  58  dated  11  January  2018, 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:

œSec. X222 Basic Deposit Account.

A  basic  deposit  account  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. It 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 onboarding	Follows simplified Know-Your-Customer KYC) f or low 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 Item œ w  of Sec. X803 of t he MORB, or ot her reliable, independent sour ce documents, data, or information.
Opening amount	Not more than P100. 00
Minimum maintaining balance	None
Dormancy charges	None
Maximum balance	Not more than P50,000. 00; Should the deposit or exceed t he P50,000.00 maximum balance, the bank should convert the basic deposit account to a regular deposit account
Reserve requirement	0%

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:

œSubsec.  X253.1  Required  reserves  against  deposit  and deposit substitute liabilities.

x x x

x x x

  UBs/KBs TBs    RBs/Coop Banks xxx       m. Basic deposit accounts, as defined in Sec. X222 of the MORB# 0 %     0 %     0 %
x x x 

Section  3.  The  following  portions  of  the  Financial  Reporting  Package  (FRP) required under Subsection X191.2 of the MORB shall be amended as indicated below:

MANUAL OF ACCOUNTS

œBALANCE SHEET ACCOUNTS

x x x

3.     Deposit Liabilities

x x x 

Section 4. Items F to I of Appendix 45 on the Notes on Microfinance are hereby amended to read as follows:

œx x x

F.   Definition and general features of microfinance  savings deposit accounts or micro-deposits

Micro-deposits  shall now be referred to as basic deposit accounts under Sec. X222 of the MORB.

G.   Definition of microinsurance x x x

H.   General features of a microinsurance product x x x

x x x 

Section 5. Appendix 105 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:


x x x

a. x x x

b. x x x

c. Kiddie and teen savings 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. Basic  deposit  account  refers  to  interest-  or  non-interest-bearing   account designed to promote financial inclusion, as defined in Sec. X222.

e.     Other peso savings account x x x

x x x 

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.