The Bangko Sentral ng Pilipinas (BSP) has issued guidelines on the settlement of electronic payments, to encourage wider use of digital channels while ensuring the safety and security of transactions.

Intended to further promote the stability of the Philippine payment system, Circular BSP 1135 specifies guidelines for the settlement of electronic payments within the national retail payment system.

“The new set of guidelines is expected to strengthen credit and settlement risk management of BSP-supervised financial institutions participating in Automated Clearing Houses (ACHs),” BSP Governor Benjamin Diokno said during his briefing. weekly press.

“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,” Diokno said.

In particular, Circular 1135 identifies responsibilities and minimum requirements for financial institutions that provide money transfer services through the InstaPay and PESONet systems.

The circular requires participants to maintain a separate demand deposit account (DDA) by ACH, one for InstaPay and another for PESONet.

In addition, the circular requires 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 when needed, thereby mitigating settlement as well as reputational risk,” Diokno said.

In addition, the new guidelines support the implementation of PESONet Multiple Batch Settlement (MBS).

Launched on January 24, 2022, PESONet MBS increases daily batch settlement from one to two cycles, one in the morning and another at the end of the banking day.

The new PESONet functionality facilitates faster crediting of funds to the recipient’s account, better cash flow management for businesses through shorter clearing intervals, and improved person-to-government payment services using the EGov Pay function for electronic payments of government bonds.

The head of the BSP noted that the volume of PESONet transactions increased by 26% to reach 7 million in 2021, compared to 5.5 million in 2020.

“Based on our projections, PESONet transaction volume could increase by more than a third as we implement MBS over the next 24 months,” he said.

—Ronnel W. Domingo

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