BSP’s new e-payment rules will ensure the stability of the payments system in the Philippines, according to the BSP chief.
BANGKO SENTRAL NG PILIPINAS — BSP Governor Benjamin E. Diokno said that the new e-payment guidelines set by the central bank will ensure the stability of the payments system in the country.
In an online press briefing last February 3, the BSP chief said that the new set of guidelines was expected to strengthen the credit and settlement risk management of BSP-supervised financial institutions participating in automated clearing houses.
“This is a key policy initiative toward encouraging the wider use of e-payment channels while ensuring that retail payment systems in the country operate in a safe, efficient, and reliable manner,” Diokno said.
In January, the central bank approved Circular No. 1135 or the guidelines on the settlement of electronic payments under the NRPS (National Retail Payment System) framework which established the two automated clearing houses (ACHs), PESONet and InstaPay.
The circular has identified the responsibilities and minimum requirements for BSP-supervised financial institutions participating in the two automated clearing houses such as the requirement for clearing participants to maintain a separate demand deposit account (DDA) per automated clearing house, or one DDA for PESONet and another DDA for InstaPay.
Also, the circular has required the clearing switch operators of automated clearing houses to provide clearing participants with access to timely data, allowing them to efficiently monitor their DDA balances against their net clearing obligations.
“The timely monitoring of DDA balances enables participants to place additional funds if the need arises, thereby mitigating settlement as well as reputational risks,” Diokno said.
READ ALSO: BSP OKs Rules On Batch Settlement Of Electronic Payments
The circular issuance was in time to the central bank’s launching of the PESONet-MBS (PESONet Multiple Batch Settlement) last month.
With the batch settlement, the central bank will increase the frequency of PESONet settlement to 2 cycles in a banking day for a faster end-users clearing and settlement.
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