The Bangko Sentral ng Pilipinas (BSP) is proposing tougher penalties for payment system operators that fail to meet regulatory reporting standards, aiming to improve the data it uses to monitor the country’s payment services.

The central bank is currently seeking industry feedback on a draft circular that would amend reporting rules for banks, e-wallet providers, and payment gateways.

Stakeholders have until 21 November to submit comments. The BSP uses this data to assess the reach and effectiveness of the products and services that payment providers offer.

Under the proposed rules, any report that fails to meet BSP standards would be subject to a daily penalty for each day the violation persists.

If an operator submits a non-compliant report on time, the BSP will grant them one chance to resubmit it before the deadline. The proposed daily fines vary by institution.

Large banks could face fines up to PHP 3,000 per day, while digital banks could pay PHP 2,000 daily. Thrift and rural banks face potential penalties of PHP 1,500 and PHP 450 per day, respectively, and non-bank operators could receive fines up to PHP 1,000 daily.

In addition to monetary penalties, the BSP may also impose non-monetary sanctions on an operator’s directors or officers, including suspension or disqualification.

This proposal comes as digital payments continue to grow.

BSP data showed digital payments made up 57.4% of the total volume of retail transactions in 2024, up from 52.8% in 2023. In terms of value, digital payments accounted for 59% of all retail transactions last year.

Featured image by fabrikasimf via Freepik.