The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) approved the abolition of certain fees relative to the participation of bank and non-bank financial institutions in the operations of the Philippines Payments and Settlements System (PhilPaSS). These are: 1) annual license fees of P20,000 for the use of the PPS-FES Client System by non-SWIFT user banks, and 2) monthly connectivity/access fees of P30,000 for Third Party System Providers.
The rationale for the abolition of the abovementioned fees is in line with the thrust of the BSP to encourage more financial entities under its supervision to participate in the settlement operations of PhilPaSS. Currently, the transactions that settle in PhilPaSS through demand deposit accounts maintained with the BSP include high-value interbank lending and borrowing, sale and purchase of government securities, peso-leg settlement of foreign exchange (USD) sale and purchase, results of PCHC check clearing operations, MegaLink Network funds transfers/payments, Repo/SDA/RDA placements/availments with BSP-Treasury Dept, BIR/BOC revenue remittances, electronic cash withdrawals with BSP-CashD, interbank customer payments, e-Rediscounting and deposits for reserve compliance.
The BSP’s thrust to expand the usability of PhilPaSS as a payments facility that is fast, safe and efficient is not only to benefit banking institutions that are mostly based in Greater Manila but also those in far-flung areas nationwide. The participation in PhilPaSS of thrift and rural banks situated miles away from BSP offices in the regions will enable them to electronically manage their deposit (DDA) reserves with the BSP including the processing of interbank customer payments, if any.
PhilPaSS is the online and Real Time Gross Settlement System owned and operated by the Bangko Sentral ng Pilipinas (BSP). The main objective of PhilPaSS is to mitigate if not totally eliminate the related risks especially in high-value payments systems since the settlement is made thru the central bank. Through continuous collaboration with its stakeholders, the BSP spearheads in promoting safe and efficient payment systems in the country. Launched in 2002, the current stakeholders of PhilPaSS include 38 commercial banks, 37 thrift banks, 10 Non-Banks performing Quasi-Banking functions (NBQBs), 1 Rural Bank and 5 Third Party System Providers (MegaLink, Philippine Clearing House Corporation, Philippine Securities Clearing Corporation-PDS Settlement Highway, and the Bureau of the Treasury-RoSS)