The Bangko Sentral ng Pilipinas (BSP) will impose monetary penalties of up to P75,000 per incident on large banks that fail to manage their liquidity positions under the peso real-time gross settlement (RTGS) payment system, according to a new memorandum.
BSP Memorandum No. M-2024-039, approved by BSP Governor Eli M. Remolona Jr. on Dec. 11, stated that depending on the severity of an offense in the RTGS, the BSP will fine, sanction, and/or suspend the offending bank from participating in the Intraday Settlement Facility and accessing the RTGS.
“Repeat offenders will be met with stiffer penalties and sanctions,” the BSP said.
For failing to properly manage liquidity positions in the RTGS, monetary penalties will be as high as P75,000 per violation for universal and Islamic banks, and P65,000 per violation for commercial banks.
Digital banks and thrift banks will face a lower fine of P30,000 per violation, while rural/cooperative banks and non-banks with quasi-banking functions will be penalized P20,000 per violation.
The BSP listed 11 types of violations of the RTGS rules, each with a corresponding fine or penalty. The amount ranges from P2,000 to P75,000, depending on the category of bank or non-bank, as per its BSP license.
The memorandum also lists three types of fines for non-compliance with RTGS transaction reporting standards, ranging from P200 to P500 per calendar day of delay in report submission.
For erroneous reporting and non-submission of reports, fines range from P6,000 to P30,000 per violation.
The RTGS is one of five critical payment systems designated as systemically and prominently important for the stability of the country’s national payment system (NPS).
Operated by the BSP, the RTGS settles payment transactions using demand deposit accounts maintained by banks and non-banks.
RTGS participants include the BSP; financial institutions maintaining settlement accounts with the BSP; financial market infrastructures (FMIs); clearing switch operators; and critical service providers within the RTGS ecosystem.
The BSP’s RTGS payment system ensures the smooth flow of funds and transfers in the country. It facilitates fund transfers in financial markets where these institutions trade securities and foreign currencies for business and risk management purposes.