Financial institutions in the Philippines have been warned by the Bangko Sentral ng Pilipinas (BSP) that they will be called to explain their fee structures if they have not complied with the central bank's new rules on retail transfer charges.
BSP Deputy Governor Mamerto E. Tangonan announced that the regulator will meet with several financial institutions this week to discuss their noncompliance or adjusted transfer fees that fail to satisfy the conditions set by the BSP. The invitees include e-wallet operators GCash and Maya, which have lowered their InstaPay transfer fees to P10 from P15 previously.
The BSP wants to understand the pricing mechanism behind the reduced fees, as the regulator believes that the fees charged for person-to-person transactions between different institutions should not be materially different from charges for transfers within the same entity. The new rules require financial institutions to adopt reasonable, fair, and market-based pricing for retail digital fund transfers.
The BSP Circular 1238, issued on June 17, took effect on July 4 and requires financial institutions to ensure that their fee structures do not result in one user group unreasonably subsidizing the cost of serving another. The central bank has clarified that any differences in fees should be supported by reasonable and directly attributable costs, such as switching or network-related expenses.
Several banks have already adjusted their fee structures in compliance with the new rules, including Bank of the Philippine Islands, Land Bank of the Philippines, and Union Bank of the Philippines, which have permanently waived both their InstaPay and PESONet fees for retail transfers. Others, such as Rizal Commercial, are now offering free InstaPay transfers with certain conditions.
The BSP has emphasized that an immediate sanction is not the priority, and institutions will be given the opportunity to explain their compliance before any penalties are imposed.
The meeting with the financial institutions is seen as a crucial step in ensuring that the new rules are implemented fairly and that consumers are not unfairly burdened with excessive fees. The BSP has made it clear that it will continue to monitor the situation and take necessary actions to protect consumers and promote fair competition in the financial sector.
