BSP issues rules for OPS registration
Published Sep 17, 2019 00:00 am
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Updated Sep 17, 2019 00:00 am
By Lee C. Chipongian
The Bangko Sentral ng Pilipinas (BSP) has issued the rules and regulations to guide the registration process of operators of payment systems (OPS) that is consistent with the National Payment Systems Act.
MB file photo.
BSP Deputy Governor Francisco G. Dakila Jr., who signed the Monetary Board resolution (BSP Circular No. 1049), said the new rules and regulations for OPS embodies the “crucial role of payment systems in maintaining a stable financial system and facilitating the realization of monetary policy objectives.”
“lt is thus important for the operation of payment systems to be safe, efficient and reliable,” Dakila said in the circular memo.
The rules and regulations are as covered in Republic Act No. 11127 or the National Payments Systems Act (NPSA). This is required under Section 10 of the NPSA which provides that all OPS will have to register with the BSP and this inventory will be used as inputs to the specific criteria for designating payment systems, as well as the oversight rules to be applied to such systems and the participants, said the BSP.
By law and BSP’s definition, an OPS is a person that performs any of the following functions: Maintains the platform that enables payments or fund transfers, regardless of whether the source and destination accounts are maintained with the same or different institutions; operates the system or network that enables payments or fund transfers to be made through the use of a payment instrument; and provides a system that processes payments on behalf of any person or the government.
Also, the BSP said any “such other activities similar to the foregoing, as may be determined by the Monetary Board” will also be OPS functions.
For banks, electronic money issuers (EMIs) and money service businesses (MSBs) already registered/licensed by the BSP, which may also fall under the definition of an OPS under RA No. 11127, such institutions will only have to submit a duly accomplished application for registration, based on the circular.
Last April, the BSP released a draft of the first circular for the NPSA implementing rules and regulations for industry comments. It has simplified procedures for the registration with the BSP of payment institutions such as banks, EMIs and all other MSBs, which are already monitored by the central bank.
It laid down the initial phased-in implementation of the NPSA, which prioritizes the creation of a baseline inventory of all OPS.
MB file photo.
BSP Deputy Governor Francisco G. Dakila Jr., who signed the Monetary Board resolution (BSP Circular No. 1049), said the new rules and regulations for OPS embodies the “crucial role of payment systems in maintaining a stable financial system and facilitating the realization of monetary policy objectives.”
“lt is thus important for the operation of payment systems to be safe, efficient and reliable,” Dakila said in the circular memo.
The rules and regulations are as covered in Republic Act No. 11127 or the National Payments Systems Act (NPSA). This is required under Section 10 of the NPSA which provides that all OPS will have to register with the BSP and this inventory will be used as inputs to the specific criteria for designating payment systems, as well as the oversight rules to be applied to such systems and the participants, said the BSP.
By law and BSP’s definition, an OPS is a person that performs any of the following functions: Maintains the platform that enables payments or fund transfers, regardless of whether the source and destination accounts are maintained with the same or different institutions; operates the system or network that enables payments or fund transfers to be made through the use of a payment instrument; and provides a system that processes payments on behalf of any person or the government.
Also, the BSP said any “such other activities similar to the foregoing, as may be determined by the Monetary Board” will also be OPS functions.
For banks, electronic money issuers (EMIs) and money service businesses (MSBs) already registered/licensed by the BSP, which may also fall under the definition of an OPS under RA No. 11127, such institutions will only have to submit a duly accomplished application for registration, based on the circular.
Last April, the BSP released a draft of the first circular for the NPSA implementing rules and regulations for industry comments. It has simplified procedures for the registration with the BSP of payment institutions such as banks, EMIs and all other MSBs, which are already monitored by the central bank.
It laid down the initial phased-in implementation of the NPSA, which prioritizes the creation of a baseline inventory of all OPS.