The Bangko Sentral ng Pilipinas (BSP) and the Bureau of the Treasury (BTr) have introduced a fully automated Intraday Settlement Facility (ISF) to streamline financial transactions for financial institutions (FIs).
The new ISF is accessible to all eligible FIs experiencing timing mismatches while settling transactions through the Peso Real-Time Gross Settlement (RTGS) Payment System, operated by the BSP. This development is a result of integrating BSP’s RTGS system, PhilPaSSplus, with BTr’s Enhanced National Registry of Scripless Securities. The automation of ISF aligns with BSP’s goal to promote a safe, efficient, and reliable funds transfer system, bolstering financial stability.
By addressing timing mismatches in the settlement process, the ISF prevents gridlocks in PhilPaSSplus, facilitating a smooth, paperless process. PhilPaSSplus participants can now secure funds within minutes by initiating a repurchase agreement or repo transaction with the BSP. These funds can then be used to manage queued or anticipated outgoing payment instructions in the PhilPaSSplus.
PhilPaSSplus is the nation’s sole Peso RTGS system, ensuring efficient and low-risk settlements of large-value fund transfers between financial institutions. It also handles the clearing results of retail payments made by individuals, businesses, and the government via checks, ATMs, InstaPay, and PESONet. Managed by the BSP’s Payments and Settlements Department, PhilPaSSplus plays a crucial role in maintaining the stability of the national payment system.
Recognized as a systemically important payment system (SIPS) under the BSP’s Payment System Oversight Framework, the Peso RTGS Payment System carries systemic risk that could impact the national payment system’s stability. Participants in the SIPS must adhere to the rules, standards, and requirements set by the BSP to ensure the payment system’s safety, efficiency, and reliability.