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BSP: Payments system law critical to economy.

THE Bangko Sentral ng Pilipinas (BSP) on Monday lauded the signing into law of the National Payment Systems Act (NPSA), saying the development is 'critical to the country's payment systems development agenda and to the stability and efficiency of the monetary and financial system.'

Central Bank Governor Nestor A. Espenilla Jr. said the NPSA-which places the BSP as the

overarching regulator of the payments system in the country-is expected to bring about more competition, greater efficiency and foster digital innovations for both banking and payments product and services.

'The NPSA will foster a level playing field for all participants as they will now be governed by a single overarching legal and regulatory framework,' the governor said.

President Duterte signed on October 30 this landmark legislation, mandating the BSP to oversee payment systems in the Philippines and exercise supervisory and regulatory powers for the purpose of ensuring the stability and effectiveness of the monetary and financial system.

Under the law, the BSP shall coordinate with other regulators and concerned government agencies to avoid gaps, inefficiencies, duplications and inconsistencies in its regulation of other systems related to or interconnected with payment systems. This includes coordination with the Securities and Exchange Commission (SEC) for an orderly discharge of payment obligations arising from securities transactions. Under the law, Espenilla noted, nonbank entities providing payment services may now be regulated by the BSP.

'Regulations can also have flexibility commensurate to requirements of payment services which are more transactional in nature and not the holding of customer funds like deposits,' Espenilla explained.

'This will allow faster expansion especially of electronic payments,' he added.

All operators of payment systems as defined under the NPSA shall register with the BSP in a manner and within a specific period that may be prescribed by the Monetary Board within six months from the effectivity of the law.

Under the NPSA's transitory provision, payment systems existing on the day of the effectivity of the law shall be given sufficient time, as may be determined by the BSP, to comply with the requirements of the NPSA.

The BSP also said it will issue implementing rules and regulations, and provide guidance to new entities covered under the NPSA on how to comply with the requirements of the new law.

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Publication:Business Mirror (Makati City, Philippines)
Date:Dec 18, 2018
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