Bangko Sentral ng Pilipinas (BSP) Monetary Board (MB) approved the guidelines for new bank service channels. BSP also moderated the present regulations on deposit taking activities outside bank premises. Read on to know more about it.

Five Things You Need To Know On BSP’s Regulations For New Bank Service Channels:

 

1. Banks with prior authorization of BSP can now serve their clients through cash agents.

"Under the new regulations, banks are now allowed, with prior BSP authorization, to serve clients through cash agents contracted by banks to accept and disburse cash in its behalf, facilitating online self-service deposits, withdrawals and fund transfers, as well as bills payment.” BSP said in its media release statement.

2. Banks can contract cash agents such as convenience stores, pharmacies and other highly accessible retail outlets.

Cash agents can also perform Know-Your-Customer procedures as well as collect and forward application documents for loan and account opening.  They may also sell and service insurance as may be authorized by the Insurance Commission.  These cash agents can be convenience stores, pharmacies and other highly accessible retail outlets.

3. Banks can now serve a wider client base through the cash agents.

Through cash agents, the banks can serve a wider client base. BSP said that in the low-income and rural areas there is a limited commercial incentive to establish a full branch or even a micro-banking office (MBO).  Banks can now serve the currently unbanked and low-income segments. 

4. Banks now have the flexibility to design appropriate and cost efficient ways to render deposit pick-up and delivery services to their clients.

BSP also moderated the existing regulations on offsite deposit servicing as well as deposit solicitation. BSP said that it removed the highly prescriptive operational requirements and conditions before banks may engage and offer these services. The banks will now have the flexibility in designing appropriate and cost-efficient ways to render deposit pick-up and delivery services. 

5. Banks must have adequate risk management and internal control systems. 

Moreover, BSP will evaluate the quality and sufficiency of the bank’s risk management and control systems before authorization to perform banking services outside bank premises. This is to ensure the safety and soundness of banks and consumer protection.

What do you think of BSP’s regulations for new bank service channels? What about the moderation of deposit and pick up services to the banks’ clients? Let us know in the comments section below.

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