BSP Unveils Ambitious Plan to Promote Digital Financial Inclusion
The Bangko Sentral ng Pilipinas (BSP) has taken a significant step towards promoting digital financial inclusion in the country by introducing a range of initiatives aimed at increasing access to financial services, particularly among underserved and unbanked communities.
National Retail Payment System (NRPS)
Launched in December 2015, the NRPS is a key component of the central bank’s strategy to promote digital financial inclusion. The system aims to create a safe, efficient, and reliable electronic retail payment system that is interconnected and interoperable.
Framework and Objectives
The NRPS framework defines high-level policies, standards, and governance principles covering retail payment operations and infrastructures. It aims to fast-track the establishment of an effective electronic retail payment system and promote a “cash-lite” economy.
Key Regulations and Initiatives
To achieve this goal, the BSP has issued several circulars outlining key regulations on digital financial inclusion. These include:
- Basic Deposit Account (Circular 992): Allows Filipinos, especially those in underserved areas, to receive and make payments via electronic devices.
- Risk-Based Know-Your-Customer (KYC) Rules (Circular 950): Permits supervised institutions to implement reduced KYC rules for certain low-risk customers and use technology to replace face-to-face contact requirements.
- Virtual Currency Regulations (Circular 944): Recognizes virtual currency as an innovative instrument for remittance and payment transactions.
The BSP has also strengthened regulations on pawnshops and Money Service Businesses (MSBs) (Circulars 938 and 942) to ensure they are properly supervised and can provide basic financial services to underserved communities.
Additional Initiatives
In addition, the central bank has launched several initiatives aimed at promoting digital financial inclusion, including:
- Branch-Lite Program (Circular 987): Enables branch-lite units to provide a wide range of financial products and services suited for servicing the needs of the market.
- National Digital ID System: Supports the government’s initiative to implement a national digital ID system, which can be an important tool for client onboarding, especially for those who are currently unable to open a formal account due to lack of acceptable ID.
Inclusive Finance Advocacy Office (IFAO)
The IFAO has been established to promote digital financial inclusion in the country. The office is responsible for designing and implementing key elements of the BSP’s financial inclusion agenda.
Quotes
“We believe that digital financial inclusion can play a crucial role in reducing poverty and increasing access to financial services among underserved communities,” said BSP Governor. “We are committed to promoting a cash-lite economy and ensuring that all Filipinos have access to safe, efficient, and reliable electronic retail payment systems.”
Contact Information
- Inclusive Finance Advocacy Office
- Address: 10th Floor, Multi-Storey Building, BSP Complex, A. Mabini St., Malate, Manila 1004, Philippines
- Tel: +632-7087482
- Fax: +632-7087481
- Email: IFASinfo@bsp.gov.ph