How Many Months Is a Cheque Valid in the Philippines?

Knowing the validity of cheques in the Philippines is important if you deal with this mode of payment a lot. Recently, some of the banking industry’s processes were changed because of new Philippine regulations. Knowing what some of these updates are is something that checking account holders in the Philippines must take note of so that they can go about their transactions smoothly.

What is a Check?

A cheque is a type of document that orders a bank to pay a specific amount to a person or business account. This type of payment is used for large payments because it’s much more secure than cash. No one can withdraw the money if they’re not the indicated receiver on the document.

However, you may only issue checks if you have a checking account, which is one of the biggest differences between a checking account and a savings account. Although some accounts like RCBC’s One Account, a hybrid checking-savings account, can do this.

How Many Months Is a Check Valid?

Recently, banks have been trying to push individuals to deposit their checks within 180 days (more or less 6 months), or they may not accept it.

But for banks that accept Modified Disbursement Scheme (MDS) checks, the Bureau of Treasury enacted the Treasury Circular No. 03-2017, which has reduced the validity of these MDS checks from six months to three months to simplify the government’s accounting process.

So, it’s a good rule of thumb to deposit a check as soon as possible, so you don’t run the risk of it becoming stale.

What are Some Reasons a Check May Not Clear?

Aside from not depositing a check before it expires, there are other reasons that a check may not clear. If you have a checking account in the Philippines, these are some of the things you need to know so you can avoid them:

Old Format Check

A big change that happened recently is that the Philippine Clearing House Corporation (PCHC) has implemented a standardized check design that should be out in full force by May 1, 2024. This means that old checks will no longer be accepted by banks, and these must all be deposited before May 1, 2024. The standardization of check designs was enacted to help the automated check verification systems of banks.

So, if you receive an older formatted check, you may want to request a new check, or you’ll need to deposit it before the looming implementation date.

Lack of Funding

It happens, sometimes we forget to transfer money or load up the checking account to fund the checks. Even with an overdraft ready to fund your checks, sometimes your overdraft limit may still not be enough.

Checks lacking funding or a bounced check will incur charges, so it’s best if you avoid this mistake altogether. The fees will vary per bank, for RCBC these are the checking fees and charges.

Incorrectly Filled

If you commit a mistake on a check like misspelling the name or amount in words and you don’t countersign, this can automatically render your check invalid. The check may also not be accepted by the bank if the name on the check doesn’t match the name of the person who’s depositing it.

Another reason why your check may not be accepted is if the check you’ve signed doesn’t match the specimens you’ve provided the bank.

So, if you’re nervous about writing a check or if it’s been a while since you’ve done it, try to brush up on a guide on how to write a check to avoid any of these mistakes. 

Making Payments a Breeze with RCBC

RCBC is determined to make your life easier by ensuring that your transactions are on time every time through our online check deposit feature. We also believe that you should have the best products available to you by providing you with new finance products like RCBC’s OneAccount - an account that’s both a savings and checking account. 

Visit our website to learn more about the products we offer.