BSP issues guidelines for payment systems in Philippines

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The Bangko Sentral ng Pilipinas (BSP) has released its first Manual of Regulations for Payment Systems (MORPS), a formal compilation of all payment system regulations approved by the Monetary Board as of end-December 2023.

BSP Governor Eli Remolona Jr. said the MORPS is designed to organize the numerous policies and regulatory issuances of the central bank systematically.

'As the BSP takes strategic strides toward payment system reforms in alignment with international standards and best practices, it has become imperative that the regulatory issuances on payments are readily available to guide these reforms,' he said.

According to the central bank, the MORPS is readily available for all participants of the National Payment System and the public. It acts as a guide for all rules and regulations related to the NPS, including the services, processes, procedures and responsibilities of the participants.

The MORPS also summarizes the payments-related policy and issuances by the BSP, which implement provisions of Republic Act 7653 or the New Central Bank Act, RA 11127 or the NPS Act, and other related laws.

The BSP said it would update the MORPS annually to properly organize all updates and amendments.

'The MORPS is primarily designed to foster adherence by operators of payment systems (OPS) to standards that are aimed at fortifying the safety, efficiency, and reliability of the national payment system,' Remolona said.

'Its significance, however, extends beyond OPS as it serves as an invaluable reference for any individual, institution or agency with an active interest in the national payment landscape,' he added.

In finalizing the guidelines, the BSP renumbered some circulars and memoranda as appropriate before these were incorporated to the MORPS.

NPS-related issuances provided in the Manual of Regulations for Banks and for non-bank financial institutions were also included in the MORPS.

The BSP also created new parts in the MORPS, namely the regulatory framework, the retail payment system, governance and oversight, licensing and registration, settlement, efficiency and effectiveness as well as the sanctions and enforcement framework.

The sanctions and enforcement framework consolidated all previous issuances of the BSP.

The BSP said the compliance of participants with the regulation in the MORPS is important for the stability and integrity of the country's payment systems.

Members who were not compliant with the central bank's rules will be subjected to supervisory and enforcement actions, as stated under the New Central Bank Act and the NPSA.

'As the financial landscape continues to evolve, the BSP remains steadfast in its commitment to provide a regulatory framework that supports the growth of digital payments,' the central bank said.

'The MORPS is a cornerstone of the BSP's commitment to build a robust and inclusive financial ecosystem for the benefit of all Filipinos,' it added.