THE House of Representatives on Wednesday evening approved on second reading House Bill 6924 which seeks to expand banks’ service delivery channels through cash agents.

Also known as the Bangko sa Baryo Act, the measure seeks to widen unbanked Filipinos’ access to financial services. The bill is principally authored by Deputy Speaker and Camarines Sur Rep. Luis Raymund F. Villafuerte, Jr.

The bill defines cash agents and provides eligibility requirements. It ensures that agents, as extensions of the banking system, are able to provide professional service, keep records, handle cash and manage liquidity.

Cash agents should be able to assist in performing bank services, including forwarding account opening applications, cash-in and cash-out services and initial customer identity verification, especially for efforts on anti-money laundering and combating terrorism financing.

The measure also requires the contracting bank to ensure the cash agent follows standard bank protocols and exercise due diligence when dealing with customers.

Cash agents who establish business in a “remote area” will be entitled to the following incentives: free training of cash agent personnel on various bank processes; expedited processing of permits and certificates that are requisites to business registration; and exemption from income tax for one year.

To make sure the government can make “seamless” online cash transfers to beneficiaries via banks, remittance centers, payment platforms or cash agents, Mr. Villafuerte said in a statement on May 31 that the Department of Information and Communications Technology (DICT) needs to expedite its National Broadband Program.

The program aims to deploy fiber optic cables and wireless technologies to ensure regional connectivity and improve internet speed nationwide.

Citing reports from the Asian Development Bank (ADB), Mr. Villafuerte said only 28% of Filipino adults own a bank account, while only 10% borrow money from formal institutions over a 12-month period.

“This bill endeavors to attain financial inclusion for the Filipino people and to establish robust financial consumer protection frameworks. (It also aims to) increase citizen’s financial literacy and capability so they understand different financial services. Soon, an average barrio folk will be able to make sound financial decisions and put his hard-earned money to beneficial use,” he said.

At the same time, the House also approved on second reading two measures, including House Bill 6926 or the National Digital Careers Act which seeks to support the development and define employment standards for digital careers in the country.

Also approved was House Bill 6927 or the E-Government Act, which will require electronic government services and processes in all agencies and government corporations.

All these three bills will have to go through third and final reading before passing the House. — Genshen L. Espedido

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