NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
EXPLANATORY NOTE 
According to the Manual of Regulations for Banks, dormant accounts are defined as 
(1) Current or checking accounts showing no activity (deposit or withdrawals) for a period of
one (1) year or (2) Savings account showing no activity (deposit or withdrawals) for a period
of two (2) years.
The practice of these banks, as authorized by the Bangko Sentral ng Pilipinas is to 
charge fees on these dormant accounts, usually in an amount ranging from P300 to P500 per 
month. 
There are reports that some Overseas Filipino Workers come home after their work 
abroad to find that instead of their bank deposits increasing, it has been reduced by absurd 
dormancy fees imposed by the banks.  
One explanation as to why banks charged dormancy fees is that banks may have 
anticipated a certain amount of activity on each account, which can generate fee income for 
them. And because of the inactivity, they see these dormant fees as a way to replace the 
expected income that they lost to the detriment of the depositor. 
This practice has to stop because banks must understand that they are operating 
primarily to help people and not make money off innocent depositors who may have forgotten 
about an account or who had to go overseas and left the account inactive while abroad. 
Also, why is there a need to charge service fees when banks are in fact already earning 
interests when the deposits are utilized as loans to bank borrowers at substantially higher 
rates than the interest in deposits. 
In view of the foregoing, immediate approval of this bill is earnestly requested. 
 RUFUS B. RODRIGUEZ 
March 16, 2023
7:00 pm
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NINETEENTH CONGRESS   
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session  
 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
AN ACT 
PROHIBITING THE IMPOSITION OF FEES AND CHARGES ON DORMANT ACCOUNTS, 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. A dormant or inactive account is hereby defined as: 
(1) Current or checking accounts showing no activity (deposit or withdrawals) for a period
of three (3) years.
(2) Savings account showing no activity (deposit or withdrawals) for a period of five (5)
years.
SEC 2. Banks shall review and segregate dormant accounts as herein defined at least once 
in every semester. 
SEC 3. Internal control measures – 
(1) As a matter of policy, banks shall exert all efforts to prevent checking and savings accounts
from becoming dormant. When it becomes apparent that an account is inactive, a short letter
should be sent to the depositor encouraging him to use his account.
In case of checking accounts, the banks shall ensure that the monthly statement of 
accounts reach the depositors. If the depositors cannot be located, the following steps should 
be undertaken: 
(a) Check any significant changes or fluctuations in the depositors’ account balances
over a period of time with emphasis on accounts with decreasing balances;
(b) Verify apparent reactivation entries, represented either by deposit or withdrawal,
that appears to have prevented the account from being classified as dormant; and
(c) Investigate any obvious alteration of the ledger records.
(2) Segregated dormant accounts shall be placed under joint custody of two (2) responsible
officers/employees.
(3) A separate ledger control for dormant accounts shall be maintained.
(4) Signature cards for dormant accounts shall also be segregated from active files and held
under joint custody.
(5) Entries to dormant account ledgers shall be verified and approved by a designated officer.
His initials shall be placed next to the entry on the ledger sheet.
(6) All inquiries on dormant accounts shall be coursed to one officer who should obtain
sufficient identification from the inquirer to assure that he is entitled to the information.
(7) A trial balance of dormant account ledgers shall be taken periodically and balances with
the general control account by an employee other than the bookkeeper.
(8) Dormant or inactive accounts shall be verified directly with depositors.
(9) All transactions affecting dormant accounts shall be subject to audit by the internal auditor.
(10) A semestral report on deposit accounts transferred to dormant shall be rendered to bank
management.
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SEC. 4. Prohibition – Banks are hereby prohibited from imposing or charging service, 
maintenance or any other fee on dormant accounts as defined in this Act. 
 
SEC. 5. Upon expiration of a period as stated in Section 1 of this Act, the unclaimed balance 
in the dormant account, including all increase and proceeds thereof, shall be deposited to the 
National Treasury to be used by the National Government. 
 
SEC. 6. Notices – After one year has lapsed without any activity on any account, the bank 
shall send a notice to the depositor informing him of said inactivity. Thereafter, banks shall 
regularly send notices to the depositor every six months. 
 
Three (3) months prior to the expiration of the periods as stated in Section 1 of this 
Act, the bank shall send a final notice to the depositor informing him of the impending deposit 
of his account to the National Treasury.  
 
SEC. 7. Implementing Rules and Regulations – Within three (3) months from the effectivity of 
this Act, the Bangko Sentral ng Pilipinas, in consultation with the Department of Finance and 
the Bureau of Treasury shall issue the rules and regulations implementing the same. 
 
SEC. 8. Separability Clause – If for any reason, any provision of this Act or any part thereof 
shall be held unconstitutional or invalid, the other parts or provisions of this Act, which are not 
affected thereby, shall remain in force and effect. 
 
SEC. 9. Repealing Clause – All laws, decrees, orders, rules and regulations including 
Presidential Decree No. 679, or parts thereof, and the Manual of Regulations for Banks which 
are inconsistent with any of the provisions of this Act are hereby repealed, amended or 
modified accordingly. 
 
SEC. 10. Effectivity Clause - This Act shall take effect fifteen (15) days after its complete 
publication in at least two newspapers of general circulation. 
 
Approved,