New Date Format for Checks
Starting January 1, 2023, all checks issued in the country must conform with the new check design based on the circular on New Check Standards issued by the Philippine Clearing House Corporation (PCHC) on February 11, 2019 (CICS Operating Memo No. 23-030). The changes in the check design are the following:
1. standard Issue Date format adopted is MM-DD-YYYY,
2. Date Format guide is indicated below the date line,
3. individual box is provided for each character of the Issue Date,
4. Peso Sign is moved out of the box (Amount in Figures), and
5. boxed white spaces for writing the date of issue, amount in figures, and signature of Issuer /Drawer.
Primarily, this change aims to standardize the date format across all banking transactions in the Philippines by creating a uniform format of writing the date on checks in order to avoid misinterpretation of Date of Issue and to enhance check processing capabilities by providing banks better optical character recognition features that are needed for an automated check verification system. In the new format, checks Date of Issue must be in the required numeric format and strictly written in the MM-DD-YYYY sequence using the boxes of the new check design.
To help banks in updating their systems and informing their customers about the change, The PCHC has been working closely with banks and financial institutions by providing trainings and seminars to ensure a smooth transition to the new date format.
For the customers, this date format change means adjusting their check-writing habits to conform to the new standard. This includes writing the date in the correct format and, also, ensuring that the date is legible and easily recognizable.
However, just recently, PHCH has moved the implementation of New Check Design from May 02, 2023 to May 01, 2024 (CICS Operating Memo No. 23-040). This is to allow more time for bank clients to exhaust remaining checks or base stocks of printed checks in their possession.
Withstanding the deferment of the implementation of the new date format, the following guidelines must be considered when issuing a check:
1. old checks (without boxes) with date of issue written in alphanumeric are still acceptable for clearing provided that they are dated April 30, 2024 or earlier and that they are presented for deposit prior to the 180th day from date of issue,
2. the issue date in alphanumeric may be written in any sequence, that is, Month-Day-Year or Day-Month-Year of Year-Month-Day format. However, it is preferred that dating follows the Month-Day-Year alphanumeric format to stay consistent with the MM-DD-YYYY format, and
3. the date of issue on check that are in the “new format” (with boxed white spaces) has to be written now in numeric format and strictly in the MM-DD-YYYY or MM/DD/YYYY sequence.
Overall, the new date format for Philippine checks is a positive development for the country's banking system. It aligns the Philippines with international standards and simplifies check processing for banks, financial institutions, and their customers. While it may take some time to transition to and get used to the new format, the long-term benefits are expected to outweigh any initial challenges or inconveniences.
By: Bernadethe N. Balagot, CPA, one of the Founders of Bytesfusion Link Solutions Inc.
