PCCI backs BSP move on cash rules

The Bangko Sentral ng Pilipinas has eased the implementation of its cash transaction cap following concerns raised by the business sector, particularly micro and small enterprises that rely heavily on cash operations.

The Philippine Chamber of Commerce and Industry (PCCI) said Tuesday that BSP Circular No. 1218, which limits daily cash transactions of businesses to P500,000, was clarified after a meeting last week with Finance Secretary Frederick Go. The circular, issued on 18 September 2025, requires transactions exceeding the threshold to be done through traceable channels such as checks, online transfers, direct deposits, or digital payments.

Business groups earlier warned that the policy disrupted legitimate cash flows, especially for smaller firms with limited access to digital or banking alternatives.

On 6 February, a day after discussions with Go, the central bank released Memorandum M-2026 to address the concerns. The memorandum clarified that bank clients are required to submit supporting documents only once to establish the legitimacy of their cash transactions.

It also directed banks to conduct enhanced due diligence on a per-customer basis for cash withdrawals exceeding P500,000, instead of requiring checks for every transaction, to prevent processing delays.

Under the revised guidelines, banks are allowed to apply due diligence measures based on a client’s risk profile, type of business, and transaction behavior. These measures may also cover related transactions such as inter-branch or interbank cash needs and loan disbursements.

“The speed with which Secretary Go acted provided immediate relief to businesses, especially micro and small enterprises that remain heavily reliant on cash transactions,” PCCI President Perry Ferrer said in a statement.

The business group also welcomed the government’s decision to retain Go as economic czar and chair of the Economic Development Committee, citing the role as key to improving the investment climate.

“It sends a strong signal that the government is serious about improving efficiency and reducing bureaucratic red tape,” Ferrer said.