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Business

BSP to banks: Step up info drive for digital payments

Lawrence Agcaoili - The Philippine Star

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has instructed banks to step up the information campaign as the deadline to increase the level of cashless transactions to 20 percent from only one percent nears.

BSP Deputy Governor Chuchi Fonacier issued Memorandum 2019 – 001 directing BSP-supervised financial institutions to establish effective mechanisms to ensure that all frontline personnel at the head offices, branches, and other banking offices possess adequate information about PESONet (Philippine EFT System and Operations Network) and InstaPay.

Both automated clearing houses (ACHs) were launched as part of the National Retail Payments System (NRPS) aimed at establishing a safe, efficient, affordable, and reliable e-payments system.

The PESONet involves the fund transfer from one account (payer) to one or several accounts (payees) maintained in different banks. The fund transfer or payment instructions are processed in bulk and cleared at batch intervals.

On the other hand, InstaPay allows customers to transfer peso funds almost instantly between accounts of participating banks. The service is available 24x7, all year round.

Fonacier said frontline personnel should be able to properly apprise customers and the public regarding these fund transfer facilities and services.

She said banks and financial institutions should post materials containing pertinent information about PESONet and lnstaPay in the premises of their offices as well as their websites to enable customers to have sufficient knowledge about these fund transfer facilities

Furthermore, Fonacier said banks should provide with prominent visibility in the their website the links to the PESONet and InstaPay websites that would be maintained or directed by the Philippine Payments Management Inc. (PPMI).

According to Fonacier, banks should be able to comply with all the requirements as required under Circular 980 not later than March 31.

For one, Fonacier said BSP supervised financial institutions are required to submit to the PPMI within the month all the actions they have taken or to be taken to comply.

The PPMI, she said, is tasked to monitor and lead its members towards compliance with the NRPS framework.

PPMI was also directed to submit updates on the status of compliance of the banks with the memorandum to the BSP Payment System Oversight Department regularly.

The regulator is now evaluating the compliance of banks in an order requiring them to make fund transfer available through their electronic channels by Nov. 30 as required under Memorandum M-2018-026.

BANGKO SENTRAL NG PILIPINAS

DIGITAL PAYMENTS

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