FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
, 
SEN.f~43 
S.No. ___ _ 
'Jt :' 
~; d:: 
OIFffCE 0,: "th~ 
$t.1',i~('j :',J{\ 
1 {} 
jllL 20 1\11 :09 
l' 
.t . 
(~. 
f!ii'i.CEllliiiO lEW: j ":~ __ 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
Through the technology of Automated Teller Machines (ATM's), bank customers can 
easily access their bank accounts in order to make cash withdrawals, cash deposits, and balance 
inquiries. 
Some ATM operators however, charge their clients for a balance inquiry transaction 
without notifying customers that such transaction has a corresponding charge. The innocent 
customer will only then learn that he was charged with the balance inquiry transaction upon 
receipt of his periodical bank statement. By then, it will have been too late for him to take steps 
to avoid the charge. 
ATM operators who set up their system to unknowingly charge consumers for simply 
requesting a balance inquiry are doing . nothing more than taking advantage of their customers. 
This Bill seeks to require ATM operators to provide a notice disclosing to the consumer that a 
fee will be imposed for providing the balance inquiry and shall require that the same be 
displayed on the ATM screen during the transaction. The notice required in this Bill shall also 
demand that ATM operators disclose the amount of the balance inquiry transaction and provide 
their consumers an opportunity to cancel the inquiry without paying a corresponding fee. 1 
I This bill was originally filed in the Fourteenth Congress, Second Regular Session 


FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
" 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
HJ 
.lIJL 20 /111: 10 
) " 
'1-
,,...., 
j 
$!~CflVf!':) ft'lV : (,.!./ 
. 
. 
Introduced by Senator Miriam Defensor Santiago 
1 
AN ACT 
2 
REQUIRING ALL AUTOMATED TELLER MACHINES TO DISCLOSE THE CHARGES 
3 
FOR A BALANCE INQUIRY TRANSACTION 
4 
5 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
6 
Congress assembled: 
7 
8 
SECTION 1. Short Title. 
9 
This Act may be known as the "Balance Inquiry Fee Notice Act". 
10 
SECTION 2. D~finitions. 
11 
For purposes of this Act, the following definitions shall apply: 
12 
a) 
ACCOUNT - means a demand, time, or savings deposit, or other consumer asset 
13 
account, other than an occasional or incidental credit balance, held either directly or 
14 
indirectly by a financial institution and established for personal, family or household 
15 
purposes. 
16 
b) 
AUTOMATED TELLER MACHINE -
means an electronic information 
17 
processing device which acceptS or dispenses cash in connection with a credit or deposit 
18 
account. The term does not include tellers' stations staffed by a person or other staffed 
19 
facilities. 
20 
21 
22 
c) 
OPERATOR - means any chartered bank, savings bank, savings and loan 
association, credit union or other entity which operates an automated teller machine. 
23 
SECTION 3. Prohibition. - An operator shall not charge a fee to a consumer for the 
24 
consumer's use of an automated teller machine to inquire as to the balance in the consumer's 
25 
account unless both of the following conditions are met: 
26 


27 
28 
29 
30 
31 
32 
33 
a. 
A notice is prominently displayed on the automated teller machine screen, 
disclosing to the consumer before the consumer is committed to completing the inquiry 
and paying the fee: 
(1) that a fee will be imposed for providing the balance inquiry service; 
(2) the amount of the fee; and 
(3) that the consumer has a right to cancel the inquiry without paying the fee; and 
34 
b. 
The consumer elects to continue the inquiry after the notice is displayed. 
35 
36 
SECTION. 4. Penalties. - Any director, officer or agent of an operator who shall 
• 
37 
authorize, order or perform any of the acts or practices constituting in whole or in part a violation 
38 
of Section 3 ofthis Act, shall upon conviction, be subject to a fine of not less than Ten thousand 
39 
pesos (PI0,000.00) but not more than Fifty thousand pesos (P50,000.00) or imprisonment of not 
40 
less than two (2) months but not more than one (1) year, or both upon the discretion of the court. 
41 
42 
SECTION 5. Separability Clause. - If any provision or part thereof, is held invalid or 
43 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
44 
valid and SUbsisting. 
45 
46 
SECTION 6. Repealing Clause, - Any law, presidential decree or issuance, executive 
47 
order, letter of instruction, administrative order, rule or regulation contrary to, or inconsistent 
48 
with the provisions ofthis Act is hereby repealed, modified or amended accordingly. 
49 
50 
SECTION 7. EffectiVity Clause, - This Act shall take effect fifteen (15) days after its 
51 
publication in at least two (2) newspapers of general circulation. 
52 
53 
Approved. 
1