THE Philippine Peso Real-Time Gross Settlement Payment System (PhP-RTGS) has been designated as a systematically important payment system (SIPS) and its participants are expected to comply with the regulatory requirements set by the central bank and international standards.
The Bangko Sentral ng Pilipinas (BSP) through Memorandum No. M-2021-045 told registered non-bank operators of payment systems with PhilPaSS Plus interface and PhilPaSS direct members to comply with the requirements set by the Payment System Oversight Framework (PSOF).
The Monetary Board in July 29 designated the PhP-RTGS as a SIPS, meaning it could pose a systemic risk that could threaten the stability of the national payment system.
“As participants of a designated payment system, subject recipients are expected to contribute towards observance by the PhP-RTGS payment system of the Principles for Financial Market Infrastructures relevant to SIPS,” the memorandum said.
Based on the memorandum, subject recipients are expected to participate in surveys meant to assess the safety, efficiency, reliability and performance of PhilPaSS Plus.
They are also expected to submit reports and documents that will be used to evaluate the PhilPaSS Plus and the national payment system as a whole. This will include relevant documents required by the BSP to be available during onsite examination and assessment.
These subject recipients are likewise required to comply with rules and standards in order to ensure the safety, efficiency, and reliability of PhP-RTGS. Part of this responsibility is to participate in activities such as testing conducted by the operator.
There are 175 direct participants of the PhilPaSS Plus system as of Nov. 30, 2020 including banks, quasi-banks, BSP units, and the Bureau of the Treasury.
The system facilitates transactions through automated teller machines, clearing houses PESONet and InstaPay, checks, and the trading of government securities in peso and dollar denominations.
The central bank has said the revamped PhilPaSS Plus will support better interoperability and integration among domestic and global payment systems.
Standards for financial market infrastructures are issued by the Basel-based Bank of International Settlement and Madrid-based International Organization of Securities Commissions.
Meanwhile, the PSOF was approved by the Monetary Board in June last year which mandated the central bank to assign systematically important and prominently important payment systems. — L.W.T. Noble