The BSP has approved the rules on the batch settlement of e-payments.
BSP — The Bangko Sentral ng Pilipinas has approved the rules and guidelines on the batch settlement of e-payments (electronic payments).
The central bank has also approved the new provisions for Clearing Switch Operators (CSOs) of the automated clearing houses (ACH), PESONet and InstaPay.
Those key provisions include requiring CSOs or clearing participants to maintain a separate DDA (demand deposit account) per settlement mechanism type.
Last January 21, BSP Governor Benjamin E. Diokno signed Circular No. 1135 or Guidelines on the Settlement of Electronic Payments Under the National Retail Payment System or NRPS Framework.
According to Diokno, the guidelines provided the responsibilities and minimum requirements for PESONet, InstaPay, and CSOs.
“The policy retains existing provisions applicable to instant retail payments while incorporating new provisions relevant to batch settlement of e-payments,” Diokno said late Friday.
Diokno added that the new set of guidelines was expected to strengthen the credit and settlement risk management for batch settlement of e-payments.
The issuance of the circular was in time to the central bank’s launching of the PESONet-MBS (PESONet Multiple Batch Settlement) on January 24. This was the latest BSP digital e-payment stream that will bring more payment transactions into the digital space.
With the batch settlement, the central bank expected to increase the frequency of PESONet settlement to two cycles in a banking day for a faster end-users clearing and settlement.
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Based on the circular, the Clearing Switch Operators implementing batch settlement of electronic payments will enable clearing participants to effectively monitor the sufficiency of their respective DDA balances for every settlement cycle.
Also, the circular emphasized that clearing participants in the PESONet-MBS must have the necessary liquidity and operational risk management measures in place in order to ensure that there will be no prefunding issues.
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