The Bangko Sentral ng Pilipinas (BSP) has reorganized its payments and currency management operations to ensure a safe and “well-functioning” cash ecosystem in the country as part of digitalization.
BSP Governor Benjamin E. Diokno, in a new memo (Memorandum No. M-2021-006) taken up during the Monetary Board meeting last week, approved the operationalization of the new Payments and Currency Management Sector (PCMS) for the “safety and integrity of the Philippine currency” and to ensure a well-functioning payments and cash environment to facilitate economic activity that “supports long-run economic growth”.
The restructured Payments and Currency Management Operations Sub-Sector or PCMOSS, according to the memo, will develop and implement “tactical strategies” for the efficient distribution and secure settlement of financial market transactions and other critical interbank fund transfers via the BSP-owned Philippine Payment and Settlement System or PhilPaSS.
PCMOSS will “ensure timely and adequate currency distribution in Metro Manila and other assigned areas” and it will handle the “smooth functioning of the financial system and the digital transformation” efforts of the BSP, said Diokno in the memo.
In the meantime, the BSP’s cash department will continue to manage the Cash Service Alliance for the efficient circulation of fit currency and will be on top of maintaining cooperation among banks in the circulation of cash.
The BSP’s payments and settlements office (PSO). on the other hand, will be responsible for the continuous flow of large value payments in the financial system, according to the memo.
The PSO will also manage the Personal Equity and Retirement Account System.