July 03, 2022 - Sunday
Website Name Image
Weather icon
24.85 ℃, Overcast clouds
Davao City, Philippines

BSP lauds issuance of EO on e-payments for gov’t transactions

May 18, 2022 - Wednesday 7:05 PM by GDM

Article Banner Image

The Bangko Sentral ng Pilipinas (BSP) announced that they welcome the issuance by President Rodrigo Roa Duterte of Executive Order (EO) No. 170 on the “Adoption of Digital Payments for Government Disbursements and Collections.”

The EO mandates all government departments, agencies, and instrumentalities, including state universities and colleges and government-owned or -controlled corporations, and urges local government units to utilize digital channels in the disbursement and collection of payments.

For all disbursements, including the distribution of financial assistance, the EO requires government entities to transfer funds directly into the recipient’s transaction account, whether held in a government or private financial institution.

The EO also requires government agencies to offer digital options for collecting taxes, fees, tolls, and other government payables. The public, however, may still transact with the government through cash payment.

“Digital collection of payments will expedite transactions, generate savings for the government and the public, and reduce the risk of graft and corruption,” BSP Governor Benjamin E. Diokno stressed.

Furthermore, the EO also allows government entities to include a reasonable amount for the establishment and maintenance of required infrastructure and the system for digital payments in their respective budgets.

The DPTR pursues BSP’s twin goals of converting at least 50 percent of all retail payments into digital form and onboarding at least 70 percent of Filipino adults to the formal financial system by 2023. ###