17-05-2025
DILG tells LGUs to adopt cashless transactions for government payments
The Department of the Interior and Local Government (DILG) on Saturday asked local government units to use the electronic payment and collection systems (EPCS) as an alternative to cash transactions.
The department said this is in line with President Ferdinand Marcos Jr.'s push for digital transformation in government.
The DILG, in a memorandum circular, said LGUs may implement EPCS in collecting local taxes, fees, and other charges, in accordance with Executive Order No. 170, s. 2022 regarding the use of digital payments for government transactions.
Digital payments improve transparency, efficiency, and public convenience, the DILG said in a press release.
"LGUs are encouraged to offer secure, accessible digital options, ensure payment channels are user-friendly, and partner with authorized providers, including government servicing banks," it added.
The DILG said efforts must be made to align with the National Retail Payment System Framework and the Data Privacy Act.
The department also tasked LGUs to set clear procedures for the issuance of electronic invoices and billing notices in accordance with guidelines from the Commission on Audit and the Bangko Sentral ng Pilipinas.
The DILG however clarified that LGUs must still accept cash and other traditional modes of payment in addition to electronic payments.
It also encouraged LGUs to pass ordinances and local policies to support the full implementation of the acceptance of electronic payments. —KG, GMA Integrated News
