BSP Lauds the Government’s Move to Shift to Digital Paymentsby Fintech News Philippines May 18, 2022
The Bangko Sentral ng Pilipinas (BSP) says the issuance of the executive order on the adoption of digital payments for government disbursements and collections is a welcome move.
The executive order mandates all departments, agencies, and instrumentalities of the government, including state universities and colleges and government-owned or -controlled corporations, and enjoins local government units to utilise digital channels in the disbursement and collection of payments.
For all disbursements including the distribution of financial assistance among others, the executive order requires government entities to transfer funds directly into the recipient’s transaction account, whether held in a government or private financial institution.
It also requires government agencies to offer digital options for the collection of taxes, fees, tolls, and other government payables.
The public, however, may still transact with the government through cash payment.
Furthermore, the executive order also allows government entities to include in their respective budgets a reasonable amount for the establishment and maintenance of required infrastructure and the system for digital payments.
“Digital collection of payments will expedite transactions, generate savings for the government and the public, and reduce the risk of graft and corruption.
EO 170 provides robust support to BSP’s efforts in promoting payments digitalisation and financial inclusion under the Digital Payments Transformation Roadmap (DPTR) and the National Strategy for Financial Inclusion (NSFI),”
said Benjamin E. Diokno, Governor of BSP.
The DPTR pursues BSP’s twin goals of converting at least 50 percent of all retail payments into digital form and onboarding at least 70 percent of Filipino adults to the formal financial system by 2023.
The NSFI serves as the country’s blueprint to achieve the vision of driving financial inclusion toward broad-based growth and financial resilience.