MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) and stakeholders in the banking industry are pursuing the inter-operability among major players as part of the National Retail Payment System (NRPS).
BSP Deputy Governor Nestor Espenilla Jr. said the NRPS project basically creates a shared clearing and settlements system allowing banks to offer digital financial services in an inter-operable way.
“It means from one single account, you can do all of your transactions and deal with anyone. Unlike today, although there’s electronic banking today, they’re generally in silos, you transact within the ecosystem defined by the bank and its related companies. They don’t interact with one another. With this in place, you’ll be able to cross those barriers,” he said.
Espanilla said an agreement among the major players of the NRPS would be signed within the month for the electronic fund transfer as well as instant payments scheme.
“There are two priority use cases we have identified and we will be working with the banks to establish. What we’re targeting to happen is to have the signing of agreements by end of the month to set this up and within the year to actually operationalize the schemes,” he said.
Espenilla explained the electronic fund transfer allows the transfer from one account to any other account, online payments, remittance, among others.
On the other hand, he said instant payments would involve the immediate availability of funds.
“There will be mechanisms set up to also make it happen real time. Those are two use cases but there are others down the road. These will be the priorities because we think these are the ones that have the most traction for retail payments system,” he said.