BSP Calls on Banks to Eliminate Fees for Small Online Transactions

The Bangko Sentral ng Pilipinas (BSP) recently announced its plans to incentivize more Filipinos to shift to digital banking and online payment methods. BSP Governor Felipe Medalla stated that the BSP is urging banks to remove the fees that small bank-to-bank transactions usually incur.

According to Medalla, the Php 15 t,o Php 20 fees added on top of a specific bank transaction may discourage the use of digital payments for small transactions, particularly those amounting to around Php 200 to Php 500. To address this, the BSP is in talks with the Bankers Association of the Philippines to find ways of subsidizing such transactions.

While digital bank transfers, such as Electronic Fund Transfers (EFTs), offer more convenience and security, the fees associated with them can add up over time. BSP Governor Medalla noted that these fees act as "second or third payments" on top of each transaction and can be a burden for many Filipinos.

By removing fees for small transactions, the BSP aims to make digital banking and online payment methods more accessible to Filipinos. The BSP's initiative is a step towards a more cashless society, which offers numerous benefits such as reducing the risk of theft and increasing financial inclusion.

As we await updates from the BSP and the Bankers Association of the Philippines, we hope that more banks will offer fund transfers with smaller or no bank transfer fees. It's good to see the BSP taking active steps to encourage more Filipinos to adopt digital payment systems.