BSP Enforces Stricter Rules on Peso RTGS

The Bangko Sentral ng Pilipinas (BSP) has introduced a comprehensive penalty system for violations of the Peso Real-Time Gross Settlement (RTGS) rules, aiming to strengthen the integrity and efficiency of this critical payment infrastructure.

The Peso RTGS facilitates the real-time settlement of large-value transactions between banks and retail payments made via checks, ATMs, InstaPay, and PESONet. It is a vital component of the Philippines’ financial system, ensuring smooth and secure fund transfers across the economy.

“A clear, fair, and transparent policy on penalties and sanctions is important in maintaining the participants’ trust in the Peso RTGS and in gaining their support for its orderly operation,” said BSP Governor Eli M. Remolona Jr.

BSP Memorandum No. 2024-039, issued on December 11, 2024, specifies penalties for a range of offenses, including operational lapses, reporting violations, and breaches of RTGS rules or BSP regulations. Sanctions may involve monetary fines, suspension of privileges, or both, depending on the severity of the violation.

Participants subject to the rules include banks, non-banks with quasi-banking functions, non-bank electronic money issuers, financial market infrastructures, and clearing switch operators.

The penalties were introduced to enhance the Manual of Regulations for Payment Systems (MORPS), which governs RTGS participants. The updated policy categorizes offenses into three main types:

• Violations of operational requirements unrelated to reporting.
• Non-compliance with reporting standards.
• Breaches of Peso RTGS rules, applicable laws, or BSP regulations.

In determining sanctions, the BSP will assess the nature of the violation, its impact on the Peso RTGS system, and its effect on the participant’s financial condition. Due process will be observed, ensuring participants can explain their side and provide supporting evidence.

Governor Remolona underscored the importance of the new rules in maintaining the Peso RTGS’s role as a systemically important payment system. “The Peso RTGS performs the critical function of ensuring the smooth flow of funds across the financial system,” he said.

The penalties are designed to preserve trust and stability in the national payment system, aligning with BSP’s mandate to promote safe, efficient, and reliable payment infrastructure.

The memorandum will take effect 15 days after its publication in the Official Gazette or a newspaper of general circulation.