BSP reminds banks to accept mutilated banknotes, coins

Marje Pelayo   •   August 20, 2021   •   620

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) on Friday (August 20) reminded all authorized agent banks to accept mutilated banknotes and coins from the public.

Pursuant to BSP Circular No. 829, all BSP-authorized agent banks shall subsequently forward the said mutilated and/or doubtful currencies to the BSP for examination of redemption value and/or genuineness.

To avoid disintegration or further deterioration while in transit, banks are advised to place mutilated currency in appropriate containers.

Mutilated banknotes shall be valid for redemption if all of the following requirements are met;​

– The remaining surface area is no less than 3/5 of the original size of the banknote;

– A portion of any one of the signatures of the President of the Philippines or the Governor of the BSP remains; and

– Presence of the Embedded Security Thread (EST) or Windowed Security Thread (WST), unless the same is lost or damaged due to fire, water, chemical, or bitten by termites/rodents and the like.

Banknotes whose EST or WST were willfully removed shall not be valid for redemption.

The BSP encourages the cooperation of the banks and the public to help the agency preserve the integrity of Philippine currency.

Bangko Sentral eyes offline digital payments to boost financial inclusion in off-grid areas

Robie de Guzman   •   November 30, 2021

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) on Tuesday said it is eyeing offline digital payment solutions to enable transactions without the need for internet connection.

In a statement, the BSP said this is part of an effort to boost financial inclusion in off-grid areas.

While an effective and reliable internet connectivity is a necessary condition for digital finance to flourish, BSP Governor Benjamin Diokno said the central bank is also pursuing digital solutions to enable ‘offline payments.’

The BSP said it is working on this initiative under the Digital Payments Transformation Roadmap (DPTR), which aims to convert 50 percent of the volume of retail payments into digital form.

The initiative also aims to onboard 70 percent of Filipino adults to the formal financial system by 2023.

The BSP earlier reported it has achieved its target of reaching 20 percent of digital payments volume by 2020. The increase was largely driven by high-frequency, low-value retail transactions through electronic fund transfers.

BSP urges public to use digital money for cash gifts

Robie de Guzman   •   November 22, 2021

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) on Monday called on the public to use their digital wallets when sending cash gifts this holiday season.

​The BSP said that the use of digital money as an alternative means of giving cash gifts is “highly recommended to reduce physical contact and virus transmission between giver and receiver” amid the persisting threat of COVID-19.

“Digital wallets offer a safe, secure, efficient, and convenient way to transfer funds to family and friends during this season of giving,” BSP Governor Benjamin Diokno said in a statement.

The central bank said the widespread use of digital money is in line with its digital payment transformation and financial inclusion goals.

Citing latest reports, the BSP said it has achieved its target of reaching 20 percent of digital payments volume by 2020, largely driven by high-frequency, low-value retail transactions through electronic fund transfers.

“The BSP remains committed to catalyzing digitalization of payments and digitizing at least half of all transactions by 2023 in its push to promote a more inclusive and tech savvy Philippine economy,” it said.

Nat’l ID sufficient proof of identity in opening bank accounts – BSP

Robie de Guzman   •   November 9, 2021

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) on Tuesday reminded financial institutions that the Philippine Identification System (PhilSys) or national ID is considered sufficient proof of identity to open a bank account.

In a statement, the BSP said the BSP-Supervised Financial Institutions (BSFI) should accept the national ID card, in both physical and mobile formats, as sufficient proof of identity without the need for another ID.

The central bank’s call is in support of the Memorandum No. M-2021-057 issued by the Philippine Statistics Authority (PSA), which reminds all government and private entities to accept the PhilID card as sufficient proof of identity, subject to proper authentication. This is in line with Republic Act No. 11055 or the PhilSys Act.

“PhilSys will help more Filipinos, especially the marginalized and low-income, to begin saving money in banks and other BSFIs,” said BSP Governor Benjamin Diokno.

Diokno added that the national ID system will support the wide scale opening of transaction accounts, particularly the Basic Deposit Account, which is designed to meet the needs of the unbanked.

The PhilSys will offer online and offline methods for identity authentication through the PhilID physical security features, QR code digital verification, biometric verification, and SMS one-time password (OTP).

These features will facilitate stronger and more secure methods of identity verification than traditional methods such as manual matching of handwritten signature against specimen.

The BSP likewise directed BSFIs to include the PhilID in their list of valid IDs.

“As a foundational digital ID system, the BSP considers the PhilSys as a gamechanger for financial inclusion, a state wherein there is effective access to a wide range of financial services for all,” it said.

“Aside from contributing to the massive opening of transaction accounts, PhilSys is expected to transform how services are delivered and accessed in the Philippines, accelerating the country’s transition to a digital economy,” it added.

As of October 21, 2021, the number of transaction accounts opened due to the co-location of PSA registration sites and Land Bank account opening facilities totaled 5,922,304 accounts, the BSP said.

REACH US

The Philippine Broadcast Hub

UNTV, 915 Barangay Philam,

EDSA, Quezon City M.M. 1104

(+632) 8396-8688 (Tel)

info@untv-newsandrescue.com (General inquiries)

ABOUT UNTV

UNTV is a major TV broadcast network with 24-hour programming. An Ultra High Frequency station with strong brand content that appeal to everyone, UNTV is one of the most trusted and successful Philippine networks that guarantees wholesome and quality viewing experience.