DILG says LGUs should adopt cashless payments

MANILA, Philippines — Local government units should adopt cashless transactions to ensure transparency, the Department of the Interior and Local Government said yesterday.

The DILG, in a memorandum circular, encouraged LGUs to adopt electronic payment and collection systems (EPCS) as an alternative to traditional cash transactions.

To support full implementation, LGUs are encouraged to pass enabling ordinances and issue local policies.

The department said the EPCS could be implemented for collecting taxes, fees and other charges in accordance with President Marcos’ executive order on the use of digital payments for government transactions.

According to the DILG, digital payments not only improve transparency but also efficiency and public convenience.

It said local governments should offer secure, accessible digital options and ensure payment channels are user-friendly for their constituents.

The DILG urged LGUs to partner with authorized providers, including government servicing banks for cashless transactions.

“LGUs are also expected to define clear procedures for issuing electronic invoices and billing notices, consistent with guidelines from the Commission on Audit and the Bangko Sentral ng Pilipinas,” the DILG said in a statement.