In an effort to consolidate and clarify the regulatory framework of the Philippines’ National Payment System (NPS), the Bangko Sentral ng Pilipinas (BSP) has introduced its first-ever Manual of Regulations for Payment Systems (MORPS).
According to the central bank, the MORPS document is intended as a reference for participants within the NPS and the wider public, detailing the regulations that oversee the operation of the NPS, including services, processes, procedures, and participant responsibilities.
The MORPS summarises a variety of payments-related policy and regulatory issuances by the BSP, in line with the broader provisions of key legislations such as Republic Act No. 7653, The New Central Bank Act, as amended by RA 11211, and RA 11127, the National Payment Systems Act (NPSA), amongst other pertinent laws related to payment systems.
Among many areas, the MORPS outlines an oversight framework, including which payment system operators and oversight departments will be responsible for overseeing payment services providers, the interlinkages with financial market infrastructures and other payment activities. This will include the BSP supervising directly the operation of the national payment system NPS.
Framework and governance policies supervising the national retail payment system as well as licensing and regulating Operators of Payment Systems (OPS) were also covered in the BSP manual. Other sections included rules and regulations governing electronic payment settlements, and steps to measure the efficiency and effectiveness of the national QR code standard, QR ph.
The BSP says it has committed to updating the MORPS annually to ensure it reflects the most current payments-related policy issuances. Compliance with the regulations set out in the MORPS is critical for the stability and integrity of the payment systems.
The BSP has highlighted that any participants not adhering to these regulations will face supervisory and enforcement actions as defined under the amended New Central Bank Act and the NPSA.
As the financial landscape evolves, particularly with the rapid expansion of digital payments, the introduction of this inaugural payment manual by the BSP aims to support this growth within a regulated framework. This step is part of the BSP’s ongoing efforts to enhance the financial ecosystem in the Philippines, ensuring it remains robust and accessible to all Filipinos.
Featured image credit: Edited from Freepik
