BSP pushes for free electronic fund transfers

This will only cover personal payments and payments to small businesses.

File photo: GCash

No more fund transfer fees?

The Bangko Sentral ng Pilipinas (BSP) has released a draft circular to seek comments from various stakeholders as it calls on banks and other financial firms to make online fund transfers free for personal transactions and payments to micro, small, and medium enterprises.

The latest data show that InstaPay fees range from PHP 8 to PHP 75, while PESONet transfers range from PHP 8 to PHP 600.

Under the draft, the bank said no extra payment should be collected from person-to-person digital transfers if done either as a remittance or lending of funds for "personal, family, or household purposes and not conducted in the ordinary course of businesses."

BSP said sending money via electronic channels is also considered a personal transaction if the number of transfers does not regularly exceed 10 times a week.

The central bank said fees will be collected for transactions that do not fall under these thresholds.

According to BSP, digital payments to small businesses, or those with monthly aggregate gross receipts that do not exceed PHP 250,000, should also be free.

BSP-supervised institutions can submit their comments by October 11.

Once approved by the policymaking Monetary Board, payment service providers must comply with the new rules starting April 1, 2025. The moratorium on the increase in fees for InstaPay and PESONet transactions will also be lifted for the PSPs once they submit their proof of compliance with the circular.

What do you guys think?

Via: Inquirer