January 23, 2022 | 00:00
MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has doubled batch settlements for electronic funds transfer platform PESONet as it continues to step up its efforts to transform the country into a liquid economy.
BSP Governor Benjamin Diokno said the Monetary Council last Thursday issued Resolution 102 approving guidelines on the settlement of electronic payments under the National Retail Payments System (NRPS).
“The policy retains existing provisions applicable to instant retail payments while incorporating new provisions relating to batch settlement of electronic payments. This new set of guidelines should strengthen credit and settlement risk management for batch settlement of electronic payments,” Diokno said.
The guidelines have been published to support the implementation of the PESONet Multiple Batch Settlement. This latest digital payment initiative increases the frequency of PESONet batch settlement to two cycles per banking day, enabling faster clearing and settlement of personal and business transactions.
The framework also defines the responsibilities and minimum requirements to be met by financial institutions supervised by the BSP (BSFI) participating in the automated clearing houses established under the NRPS, including PESONet and InstaPay as well as the respective clearing switch operators. .
Diokno explained that the settlement system agreed upon by clearing participants is an integral part of the overall risk management for electronic payment services.
“Consistent with this, the BSP requires OSFIs participating in an automated clearinghouse for electronic payments to ensure that such automated clearinghouse provides certainty of settlement of clearing participants’ multilateral clearing obligations,” Diokno added.
Key provisions of the new guidelines include the requirement for clearing participants to maintain a separate demand deposit account by type of settlement mechanism.
The guidelines also state that clearing switch operators implementing batch settlement of electronic payments must allow clearing participants to effectively monitor the adequacy of balances in their respective demand deposit accounts for each settlement cycle.
The publication of guidelines governing the various settlement mechanisms under the NRPS is critical to the successful implementation of Republic Act 11127 or the National Payments Systems Act.
The BSP is about to launch PESONet multi-batch settlement tomorrow.
As part of its digital payments transformation roadmap, Diokno has pledged to convert 50% of total retail transactions in the country to electronic channels and increase the number of Filipino adults with bank accounts at 50% by 2023.
With the pandemic serving as a catalyst, the share of digital payments in total retail transactions increased to 30% in 2021, from 20.1% in 2020 and just 1% in 2013.
Similarly, the number of Filipino adults with bank accounts increased to 53% in the first quarter of 2021 from 29% in 2019.