Bank transfer fee cap stays
The BSP encourages Filipinos to actively use their accounts for digital payments, savings, and investments
Daily TribuneThe BSP encourages Filipinos to actively use their accounts for digital payments, savings, and investments
InstaPay and PESONet fees will be retained, according to a policy-making Monetary Board resolution dated 7 December 2023, the Bangko Sentral ng Pilipinas said in a statement.
Under BSP Memorandum M-2021-071 dated 28 December 2021, financial institutions that participate in the InstaPay and PESONet automated clearing houses must not increase their current fund transfer fees in line with the BSP's efforts to promote financial digitalization.
"The BSP encourages Filipinos to actively use their accounts for digital payments, savings, and investments. The central bank is working with the industry to bring more of our countrymen into the fold of the formal financial system," BSP Governor Eli Remolona Jr. said.
Meanwhile, institutions planning to introduce fees for new fund transfer services shall apply for prior BSP approval. These fees must also be reported to the BSP 60 days before implementation.
A transfer fee that is currently waived may only be restored up to the amount reported to the BSP before the waiver.
The Philippine Payments Management Inc., the industry body that oversees the operation of PESONet and InstaPay, is tasked to monitor regulatory compliance of its members and promptly report any issues to the BSP for appropriate action.
BSP may step in
Non-compliant members shall be subject to the BSP's supervisory and enforcement actions under the National Payment Systems Act and the New Central Bank Act, as amended.
The BSP will also continue to work with the payments industry to lower or eliminate fees imposed on small electronic payments.
"The reduction or removal of transfer fees for small e-payments supports our vision of digitalization and inclusivity. We are engaging the industry through dialogue to explore ways to reduce or completely eliminate fees for small-value transactions," Remolona said.
Consequently, the moratorium on InstaPay and PESONet fees shall be lifted, subject to BSP review, when zero fees for small e-payment transactions have been implemented by the payments industry.