The Bangko Sentral ng Pilipinas (BSP) has recently issued Circular 1135 which specifies the guidelines on the settlement of e-payments under the National Retail Payment System (NRPS) framework. These guidelines further promote the stability of the Philippine payments system.
“The new set of guidelines is expected to strengthen the credit and settlement risk management of BSP-supervised financial institutions (BSFIs) participating in automated clearing houses (ACHs),” said BSP Governor Benjamin E. Diokno.
“This is a key policy initiative toward encouraging the wider use of epayment channels while ensuring that retail payment systems in the country operate in a safe, efficient, and reliable manner,” the Governor added.
Circular 1135 identifies the responsibilities of and minimum requirements for BSFIs participating in ACHs, namely InstaPay and PESONet, established under the NRPS.
A key provision of the circular is the requirement for clearing participants to maintain a separate demand deposit account (DDA) per ACH, requiring one DDA for InstaPay and another for PESONet.
The circular also requires the clearing switch operators of ACHs 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,” the Governor explained.
The new guidelines also support the implementation of the PESONet Multiple Batch Settlement (MBS).
Launched last January 24, 2022, PESONet MBS increases the daily batch settlement from one to two cycles, which are set in the morning and at the end of the banking day.
The new PESONet feature facilitates faster crediting of funds to the recipient’s account, better cash flow management for businesses due to shorter clearing intervals, and enhanced person-to-government payment services using the EGov Pay facility for e-payments of government obligations.
