The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) has approved new guidelines for the “Settlement of Electronic Payments under the National Retail Payment System (NRPS) Framework.” This move aims to enhance the efficiency and integrity of the payment system.
On June 27, 2024, the BSP issued Circular No. 1196, revising the guidelines to give Automated Clearing Houses (ACHs) under the NRPS Framework more operational flexibility. The ACHs involved are InstaPay, which facilitates real-time, low-value digital payments, and PesoNet, a batch electronic funds transfer service for checks and recurring payments.
The Circular requires BSP approval for any new rules or changes to e-payment settlements under the Manual of Regulations for Payment Systems (MORPS). This is to ensure that all changes are thoroughly reviewed by the BSP before being implemented.
The revised policy allows ACHs to request adjustments from the BSP to support more settlement cycles, faster settlements, and improved e-payment efficiency. For example, an ACH can recommend using a specific demand deposit account (DDA) maintained with the BSP for settling e-payments, subject to BSP approval. This flexibility addresses evolving circumstances and new use cases.
On July 8, 2024, the BSP, Philippine Payments Management Inc. (PPMI), and the PesoNet Steering Committee activated a third settlement cycle for PesoNet transactions. This addition, called the Multiple Batch Settlement (MBS) facility, introduces a midday settlement, increasing the number of batch settlements to three per banking day.
The new cycle complements the existing two settlements conducted in the morning and at the end of the banking day. The “PesoNet 3MBS” initiative reduces clearing intervals, enables faster fund transfers, and improves cash flow management for businesses. It helps PesoNet participating banks and electronic money issuers better manage settlement risks by distributing transactions across three batches each banking day.