Banks pressed to use BSP payment, settlement
Friday, 26 November 2010 00:00
The Bangko Sentral ng Pilipinas (BSP) has again asked lenders and other financial institutions to use the electronic payment and settlement system to cut down the cost of remittances.
In a circular letter, BSP Deputy Governor Armando Suratos said pursuant to the memorandum of agreement between the BSP and the Association of Bank Remittance Officers Inc., together with the Bankers Association of the Philippines, the Chamber of Thrift Banks and the Rural Bankers Association of the Philippines, banks are urged to use the Philippine Payments and Settlements System (PhilPaSS) effective October this year.
The PhilPaSS Remit System uses the BSP-PhilPaSS as the local clearing house to transfer remittances from a local bank to another bank where the beneficiary of an overseas Filipino worker (OFW) maintains an account.
The BSP has been encouraging banks to use PhilPaSS to lower transaction fees. The system is also equipped with a feedback mechanism that will enable OFW remitters to trace the status of their remittances.
The participants in the PhilPaSS are Allied Banking Corp., Asia United Bank, Banco de Oro, Bank of the Philippine Islands, China Bank, Development Bank of the Philippines, Land Bank of the Philippines, Metropolitan Bank and Trust Co., Philippine National Bank, Philippine Savings Bank, Rizal Commercial Banking Corp. and United Coconut Planters Bank.
According to Suratos, these banks have established their connectivity with the PhilPaSS and have been transmitting batches of remittance transactions to the BSP gateway server for processing and settlement since May this year.
“For the purpose of such, all banks and other financial intermediaries performing overseas remittance business are hereby enjoined to participate in the PhilPaSS,” Suratos said.
The volume and value of transactions through the PhilPaSS went down 1.3 percent in the second quarter to 198,837 at P46.1 trillion.
LAILANY P. GOMEZ
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CARLOS ANI - SEEDFINANCE Corporation - http://www.seedfinance.net
Email: carlosani@seedfinance.net
Landline: +63495010127 Cellphone: +639152919580
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com http://phildevfinance.wordpress.com
CONSULTING - http://www.carlosani.com
My Clippings - http://www.myclipps.posterous.com
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