Latest news with #ChamberofThriftBanksConvention
GMA Network
15-07-2025
- Business
- GMA Network
BSP mulls increase in Instapay's P50,000 limit per transaction
The Bangko Sentral ng Pilipinas (BSP) is looking to increase the P50,000 limit per transaction under the InstaPay electronic fund transfer payment system, given the increasing demand from the public, an official said Tuesday. According to BSP assistant governor Redentor 'Dennis' Bancod, the P50,000 limit per transaction was made to keep transactions below the radar of the Anti-Money Laundering Council (AMLC), as processing times for those above the threshold could take longer. 'Now with this clamor, the BSP is studying the implications of increasing that amount to a certain level," Bancod said in a panel during the Chamber of Thrift Banks Convention. "We know that in the other jurisdictions like Singapore, Malaysia, and Thailand, they already increased their limits on real-time instant payments, so in our case, we're also studying that,' he added. Launched in 2018, InstaPay allows individuals, businesses, and government institutions to send and receive funds or make payments in real time of up to P50,000 per transaction. Bancod said the central bank is also conducting a similar concurrent study involving another use case of InstaPay, which will be for transactions made between businesses. 'We recognize that most of these requests are actually for a business type of payment, like for SMEs (small and medium enterprises), commercial supply payments, and so on, so forth,' Bancod said. 'The automated clearing house of InstaPay under PPMI (Philippine Payments Management Inc.) is actually already working towards launching a B2B use case, and in that case, it will allow a bigger limit as long as the originator is a business corporation,' he added. –NB, GMA Integrated News
GMA Network
15-07-2025
- Business
- GMA Network
BSP wants level playing field among digital banks, 'digital-centric banks
The Bangko Sentral ng Pilipinas (BSP) is working on establishing guidelines that seek to level the playing field among digital banks and 'digital-centric' conventional banks aimed to be released in the next few months, a top official said Tuesday. According to BSP Deputy Governor Chuchi Fonacier, the BSP is now crafting the guidelines on the assessment of the level of digital centricity of thrift banks, rural banks, and cooperative banks. 'It aims to establish the indicators that will be considered in assessing the level of digital centricity of said banks, among others, to ensure proportionate application of said prudential requirements,' she said in her keynote speech during the Chamber of Thrift Banks Convention. 'This will be subject to a phased implementation of higher regulatory standards or requirements applicable to a digital bank, as determined by BSP. This approach promotes a level playing field and ensures consistent application of regulatory requirements and expectations between digital banks and digital-centric banks,' she added. Sought for more details, Fonacier said there should be a level playing field among digital banks and thrift, rural, and cooperative banks that are digitally centric. 'We just want to provide a level playing field kasi di ba (because) there are digital banks, and there are also digital-centric conventional banks, meaning the business model is digitally centric,' she told reporters in Makati City. 'We need to level the playing field, that's why we also would require some more, let's say, capital from those doing that,' she added. At present, the BSP allows up to 10 digital banks — defined as banks that offer financial products and services that are processed end-to-end through a digital platform and/or electronic channels with no physical branches — to operate in the country. To qualify, banks must meet the minimum capitalization of P1 billion, and will have to follow all the fiduciary rules imposed on other bank categories. It has so far granted licenses to six digital banks — GOTyme, Maya Bank, Overseas Filipino Bank (OFBank), Tonik Bank of Singapore, UNObank of Singapore, and UnionDigital of the Union Bank of the Philippines. Two additional banks have also signified their intent to convert or enter as digital banks — one operating rural bank, and another European financial institution. Fonacier on Tuesday said the BSP is also preparing guidance on the ethical use of artificial intelligence (AI) in the financial sector, also targeted to be released within the year. 'While AI is being embedded in the financial system, financial institutions should be alert when it comes to upholding data privacy, and confidentiality of data control,' she said. 'This will cover key areas such as ethical AI deployment, continuous improvement in AI's accuracy when making financial decisions, and rigorous management of algorithmic bias,' she added. — BAP, GMA Integrated News
