CREDIT CARD OPERATIONS OF BANKS
approved the amendments of the Manual of Regulations for Banks and
Manual of Regulations for Non-Bank Financial Institutions on the
applicability of DOSRI rules to credit card operations of banks and
non-bank financial institutions authorized to engage in quasi-banking
functions:
SECTION 1. Subsection X328.1 of the Manual of Regulations for Banks is hereby amended to read as follows:
“Subsection X328.1 Applicability to credit card operations. —
The credit card operations of banks shall not be subject to these
regulations where the credit cardholder is a director, officer,
stockholder of the bank or their related interests (DOSRI): Provided,
That (a) the privilege of becoming a credit card holder is open to all
qualified persons on the basis of selective criteria which are applied
by the bank to all applicants thereof; and (b) the bank director,
officer, or stockholder/related interest concerned reimburses/pays the
bank for the billed amount in full on or before the payment due date in
the billing or statement of account, as set by the bank for all other
qualified credit card holders on availments made for the same period on
their credit cards. However, the transaction shall be subject to
applicable DOSRI regulations if the director, officer, or individual
stockholder/related interest concerned:( i) fails to reimburse/pay the bank within the period mentioned herein; or
(ii) on the outset, opts for deferred payment scheme, and the availment is booked by the bank.
SECTION 2. Section 4328Q (or Section 4358Q under
the New MOR) of the Manual is hereby amended by adding a new Subsection
4328Q.1 (or Subsection 4358Q1 ) to read as follows:
“Subsection 4328Q.1 Applicability to credit card operations.
— The credit card operations of non-bank financial institutions
authorized to engage in quasi-banking functions shall not be subject to
these regulations where the credit cardholder is a director, officer, or
stockholder of the non-bank financial institution or their related
interests (DOSRI): Provided, That (a) the privilege of becoming a credit
card holder is open to all qualified persons on the basis of selective
criteria which are applied by the non-bank financial institution to all
applicants thereof; and (b) the director, officer, or
stockholder/related interest concerned reimburses/pays the non-bank
financial institution for the billed amount in full on or before the
payment due date in the billing or statement of account, as set by the
non-bank financial institution for all other qualified credit card
holders on availments made for the same period on their credit cards.
However, the transaction shall be subject to applicable DOSRI
regulations if the director, officer, or stockholder/related interests
concerned:( i) fails to reimburse/pay the non-bank financial institution within the period mentioned herein; or
(ii) on the outset, opts for deferred payment scheme, and the availment is booked by the non-bank financial institution.
This Circular shall take effect immediately.
Adopted: 23 March 2000
(SGD.) ALBERTO V. REYES
Officer-in-Charge