BSP issues guidelines enhancing settlement of e-payment

The new guidelines provide operational flexibility to Automated Clearing Houses.

File photo: BSP logo

Ensuring the reliability of the system

The Bangko Sentral ng Pilipinas (BSP) has approved the revised guidelines on the "Settlement of Electronic Payments under the National Retail Payment System (NRPS) Framework" as part of ongoing efforts to ensure the integrity and efficiency of the payment system.

Under Circular No. 1196 issued on June 27, the revised guidelines provide operational flexibility to Automated Clearing Houses (ACHs) organized under the NRPS Framework. ACHs established under the NRPS are InstaPay, and PESONet.

The Circular requires prior BSP approval for new rules or enhancements to the settlement of e-payments under the Manual of Regulations for Payment Systems (MORPS). This ensures that all enhancements to the settlement guidelines of ACHs are thoroughly reviewed and approved by BSP prior to implementation, the central bank said.

The latest policy now allows ACHs to lodge requests with the BSP when they deem that adjustments are necessary to enable more settlement cycles, support faster settlement, and improve the overall efficiency of e-payments.

For instance, subject to BSP approval, an ACH may recommend the use of a particular demand deposit account (DDA) maintained with the BSP when settling e-payments, instead of separate DDAs. This can be requested in view of evolving circumstances, or when there are new use cases.

Meanwhile, the BSP, Philippine Payments Management Inc. (PPMI), and PESONet Steering Committee rolled out the third settlement cycle for PESONet transactions on July 8.

The PESONet’s Multiple Batch Settlement (MBS) facility began a midday settlement that increased its batch settlements to three cycles per banking day.

The new cycle adds to the earlier two settlements that are carried out in the morning and at the end of a banking day.

According to the BSP, the "PESONet 3MBS" shortens clearing intervals within a banking day, improves user experience by enabling faster crediting of funds to recipients’ accounts, and facilitates easier cash flow management for businesses.

This also enables PESONet participating banks and electronic money issuers to better manage settlement risks as the settlement of PESONet transactions is now divided among three batches in a banking day.

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Source: BSP