BSP urges banks to use Philpass for OFW remittances

Banks and financial institutions should course the money transfers of Filipinos working abroad through the central bank’s electronic payment and settlement system, the Bangko Sentral ng Pilipinas (BSP) said Friday. The BSP said that some 12 banks are currently coursing their overseas Filipino workers' remittance transactions through the central bank’s Philippine Payments and Settlements System (Philpass). These are: Allied Bank, Asia United Bank, Banco de Oro Unibank Inc., Bank of the Philippine Islands, China Bank, Development Bank of the Philippines, Land Bank of the Philippines, Metropolitan Bank and Trust Co., Philippine National Bank, Rizal Commercial Banking Corp., Philippine Savings Bank, and United Coconut Planters Bank. These banks have established their connectivity with the Philpass Remit System and have been transmitting batches of remittance transactions to the BSP gateway server for processing and settlement, the BSP said. The central bank has issued Circular Letter CL-2010-080 encouraging the banks’ full participation in the Philpass Remit System for electronic settlement of OFW remittances for credit to accounts of beneficiaries maintained in banks other than the remitting banks. “All banks and other financial intermediaries performing overseas remittance business are hereby enjoined to participate in the Philpass," the BSP stressed. The Philpass Remit System involves the use of the BSP-Philpass as the local clearinghouse for the transfer of remittances from a local bank to another bank where the OFW beneficiary maintains an account. The project is one of the initiatives undertaken by the BSP in coordination with the Association of Bank Remittance Officers Inc. The BSP said the settlement of OFW remittances through the Philpass Remit System would result in savings of between P100 and P500 per transaction as current system charges between P150 and P550 per transaction. OFW families are expected to save at least P92 million to as high as P922 million due to the faster and cheaper delivery of remittances to the beneficiaries at a lower rate of P50 per transaction instead of the current range of between P100 and P550 per transaction. The BSP said the system provides safer means of sending OFW remittances via the formal banking channel at lower fees. The Philpass Remit System is also equipped with an efficient feedback mechanism that would enable OFW remitters to trace the status of their remittances. -- JE/OMG, GMANews.TV