The new electronic payment guidelines established by the Bangko Sentral ng Pilipinas (BSP) will ensure the stability of the country’s payment system, said BSP Governor Benjamin E. Diokno.
“The new set of guidelines is expected to strengthen credit and settlement risk management of BSP-supervised financial institutions (BSFIs) participating in Automated Clearing Houses (ACHs),” Diokno told an online press briefing. Thursday, February 3.
“This is a key policy initiative aimed at encouraging wider use of electronic payment channels while ensuring that retail payment systems in the country operate in a safe, efficient and reliable manner,” he said. he adds.
In January, the BSP approved Circular No. 1135 or Guidelines on Electronic Payment Settlement under the National Retail Payment System (NRPS) which established the two ACHs, InstaPay and PESONet.
The circular identified responsibilities and minimum requirements for OSFIs participating in both ACHs, such as requiring clearing participants to maintain a separate demand deposit account (DDA) per ACH, or a DDA for InstaPay and another DDA for PESONet.
The circular also required ACH clearing switch operators to provide clearing participants with access to timely data allowing them to effectively monitor their DDA balances against their net clearing obligations.
“Timely monitoring of DDA balances allows participants to place additional funds should the need arise, thereby mitigating settlement risk as well as reputational risk,” Diokno said.
The issuance of the circular comes in time for the BSP’s launch of the PESONet Multiple Batch Settlement or PESONet-MBS last month. With batch settlement, BSP will increase PESONet settlement frequency to two cycles per banking day for faster clearing and settlement for end users.
According to the BSP’s definition, electronic payment batch clearing and settlement refers to the bulk processing, clearing and settlement of payment instructions at defined intervals based on a specified cut-off time. Multi-batch settlement, on the other hand, is an electronic payment settlement mechanism involving more than one batch settlement cycle within a clearing day.
PESONet is a batch electronic funds transfer that can be considered an electronic alternative to the paper check system.
The BSP met its goal of reaching 20% of digital payments volume by 2020 and even slightly exceeded the target at 20.1%. By mid-2023, this figure will reach 50%, based on the BSP Digital Payments Transformation Roadmap.
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