MANILA – The Bangko Sentral ng Pilipinas (BSP) eyes to remove maintaining balance for deposit accounts as part of reaching out the unbanked sector.

BSP Deputy Governor Nestor Espenilla Jr. said the regulator is conducting a study on several options to make it easier for the public to open basic bank accounts.

Among these options include the removal of the maintaining balance. Banks usually charge a fee on deposit accounts that fall below the required minimum monthly average daily balance.

BSP is also looking forward to removing the minimum amount as well as other requirements to open a bank account saying that “That’s the entry point for the unbanked. Low requirements, no fees, no frills and it’s easy to open."

The BSP Governor explained that consumers are hesitant to open a bank account due to several requirements including the strict know-your-customer (KYC) procedures, the minimum amount to open an account, the maintaining balance, among others.

“The idea is the requirements for KYC should be easier, fees should be lighter or none. Those are the basics that serve as barrier to entry,” he said.

National Retail Payment System (NRPS)

Espenilla said consumers need bank accounts to be able to participate in the National Retail Payment System (NRPS).

The NRPS aims to increase retail electronic payment transactions to 20 percent of total transactions by 2020 from one percent, based on 2013 country diagnostics made by the Better Than Cash Alliance.

Late last month, the BSP and various industry players signed two landmark agreements on the charter of the Payment System Management Body as well as their commitment to form two priority Automated Clearing Houses within the year.

BSP Governor Amando Tetangco Jr. earlier said PSMB is a critical and unique entity in a modern digital retail payment system as well as the ACHs that include the Batch Electronic Fund Transfer (EFT), Credit ACH to be called “PESO Net” and the Real Time Low-Value Push ACH to be called “InstaPay.”

Source: The Philippine Star