1. The Philippine Payments System
BELLA S. SANTOS
Director
Payments and Settlements Office
05/29/12 1

2. Outline of Presentation
A. Overview of National Payments System
– What is the National Payments System (NPS)
– The NPS Framework
– The NPS Network
– The PhilPaSS
– PhilPaSS Participants
• How RBs Participate in PhilPaSS
• The PhilPaSS REMIT System (Overseas REM)
• The PhilPaSS REMIT System (Domestic REM)

3. The National Payments System
• The National Payments System includes
the country’s entire matrix of institutional
and infrastructure arrangements and
processes through which money is
transferred between savers and
borrowers, buyers and sellers or from
one party to another party.
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4. Used for transacting The National Payments System
provide payment accounts, instruments
and clearing payment
instruments, and services to consumers, businesses Framework
processing and and organizations that process payment
communicating transactions, and provide clearing and such as conventions, regulations
payment information, settlement service networks for those and contracts for producing,
and transferring the financial institutions pricing, delivering and acquiring
funds between the the various payment instruments
and services
paying and receiving FINANCIAL
institutions
INSTITUTIONS
PAYMENTS MARKET
If financial transactions
INFRASTRUCTURE are the lifeblood of the ARRANGEMENTS
economy, then payment
system is the circulatory set by legislators,
Used to initiate system that enables the courts and
and direct the smooth flow of these regulators that
transfer of transactions define and govern
funds between the mechanics of
the accounts NATIONAL the payment
of payers and transfer process
payees at
PAYMENTS SYSTEM and the conduct of
financial payment service
institutions markets
LAWS, RULES ,
PAYMENTS
STANDARDS &
INSTRUMENTS
PROCEDURES

5. THE PHIL PAYMENTS SETTLEMENTS SYSTEM
BSP LIQUIDITY TOOLS:
o INTRADAY LIQUIDITY o RP
KBs FACILITY o EMERGENCY LOAN OFW REMITTANCES
o OVERDRAFT CREDIT
LINE
oINTERBANK FUND SWIFT PhilPaSS
TRANSFERS REMIT
o HIGH VALUE CUSTOMER
FX TRADES
PAYMENTS
o REMITTANCE OF PhilPaSS
BIR TAXES/BOC CUSTOM
DUTIES TO BTr DvP
o CASH WITHDRAWALS
PPS- THIRD
FR BSP CASH DEPT
o SDA/RRP FES PARTY ATM NETWORKS
SYSTEM
BSP eDvP/REPO
TBs/SBs
INTERNAL
RBs/
SYSTEMS CHECK CLEARING
NBQBs
o cFAS o SFCS
o IRIS o eREDISCOUNTING
o COCAS

6. Who are the Participants of PhilPaSS
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7. Rural Banks Participating in
PhilPaSS
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8. Benefits for RB’s Membership in PhilPaSS
Facilitate Deposit
For BSP Reserve
Requirement
Electronic Purposes Crediting of
Management of Proceeds from
DDA Balance E-Rediscounting
Serve as Direct to DDA
Settlement Bank
On OFW /Domestic
Remittances Facilitate
Electronic
Transfer of Excess
Payment of
DDA Funds to
Maturing Loans
Account in KBs
Facilitate
Interbank Fund
Transfers
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9. HOW TO PARTICIPATE IN
PHILPASS?

10. PhilPaSS Roving Team
• Considering the geographical locations of the rural
banks, the Payments and Settlements Steering
Committee, the policy making body on payments
and settlements, created the PhilPaSS Roving
Team (PRT).
• This team is tasked to reach out to rural banks and
thrift/savings banks located outside of Metro
Manila that are not yet member of PhilPaSS.

11. Services rendered by the PhilPaSS Roving Team (PRT)
• Process and approve PhilPaSS Participation
Documents on-site
• Install the PPS-FES Client Software in the RB’s
official PCs on-site
• Train RB’s authorized users of PhilPaSS. Authorized
PhilPaSS Users include bank’s operations and IT
personnel

12. How to avail of the PRT Services?
• Send a Letter of Invitation expressing interest of the rural banks in your
federation to avail of the services of the PhilPaSS Roving Team to:
Atty. Juan D. De Zuñiga, Jr.
Deputy Governor
Resource Management Sector and Security Plant Complex
& Concurrent General Counsel
• Arrange a venue for the PhilPaSS Roving Team one-stop shop.
• Coordinate with your Federation-member banks to submit the documentary
requirements for PhilPaSS membership. Forms are downloadable from BSP
website: www.bsp.gov.ph, [please click Payments and Settlements/Philippine
RTGS: PhilPaSS/Forms Items I and II B (PPS-FES Users –Non-SWIFT)].

13. How to avail of the PRT Services?
• Inform the member-banks to bring their official PCs or computers
for PPS-FES Software installation and send at least two (2)
authorized users and one IT personnel to attend the user training.
• After the approval of each rural bank’s membership, installation of
the software and training of users, the banks will only be able to
commence transacting business with PhilPaSS after the approval of
the Users Acceptance Testing Form and the generation of the
passwords of the banks’ authorized users which will be processed
at the BSP Head Office.

14. REQUIREMENTS FOR MEMBERSHIP IN PhilPaSS
Certification Signed
Letter of as accredited PhilPaSS
Application member of the Participation
RBAP Agreement
Signed System
List of Officers
Dial-Up Certification
authorized to sign the
Registration Checklist duly
PhilPaSS transactions
Form approved by the
BSP’s ITSS
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15. Invitation For the Ilo-Ilo, Aklan & Capiz Federation of
RBs
• The PhilPaSS Roving Team will conduct the One-Stop-Shop Forum
at the BSP Roxas City Branch on 8 June 2012.
• PhilPaSS Application Kit can be obtained from the PhilPaSS Booth
located near the RBAP Secretariat. The Kit contains all the
documents needed to be accomplished and submitted at the PRT
One-Stop-Shop Forum at the BSP Roxas City Branch for evaluation
and approval
• Please inform the PSO that you will be attending the forum on or
before 28 May 2012 by sending us email at
payments_unit@bsp.gov.ph or at bsantos@bsp.gov.ph or you may
call PSO at (02) 400-7071

16. The PhilPaSS One-Stop-Shop Forum
• In the PhilPaSS One-Stop-Shop Forum, the PRT will evaluate and
approve your PhilPaSS participation documents, so before coming
to the Forum, be sure that all the documents are complete.
• The participating banks need to bring at the Forum their official
PC/laptop where the PPS-FES Client System will be installed.
• The participating banks need to send two (2) PhilPaSS users and
one IT personnel for the PhilPaSS training. A Users Acceptance Test
Form will be signed by the participants which will be used as basis
for the generation of their PASSWORDS. Generation of the
passwords will be done at the BSP Main Office and will be sent to
the participants thru registered mail.

17. The PhilPaSS REMIT System
(Overseas Remittances)
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18. PhilPaSS REMIT Participants – as of Jan. 2012
1. Allied Banking Corp.
2. Asia United Bank New Participants
3. Banco de Oro Unibank 1. Philippine Veterans Bank
4. Bank of the Philippine Islands 2. Al Amanah Bank
5. China Bank 3. Philippine Bank of Communications
6. Development Bank of the Phils. 4. First Consolidated Bank
7. Land Bank of the Philippines 5. East West Bank
8. Metrobank
9. Philippine National Bank
10. Rizal Commercial Banking Corp.
11. United Coconut Planters Bank
12. Philippine Savings Bank

19. PhilPaSS REMIT Status Update
PARTICULARS 2011 2010
NO OF PARTICIPANT BANKS 17 12
VOLUME OF TRANSACTIONS 320,845 112,638
VALUE OF TRANSACTIONS P12,629,064,648 P4,003,799,184

20. OFW Remittances via PhilPaSS - REMIT
ABROI Features:
ABROI Branch/ Bank (A) in the
Remittance
- Rules are covered by a MOA
Philippines between BSP, BAP, CTB, RBAP
Partner Abroad
and ABROI,
- Same day Bank-to-Other-Bank
settlement
- Lower costs
BSP-PhilPaSS
- Effective feedback mechanism
- Safe and smooth operations
OFW Beneficiary
Account with Bank B
Funds Transfer from ABROI
Bank A to Bank B

21. PhilPaSS
REMIT SYSTEM
Remitting/ Sending Bank
(Remittance Transactions
Processing)

22. Remitting Bank PhilPaSS CAS
4 Checks if
remitting/sending bank
has sufficient DDA balance
(9:00AM-5:45PM); debits its
DDA and credits the DDA
5 Sends
Mainframe
of the beneficiary/receiving
Settlement bank.
Status
BSP Network 3 Sends summarized
7 transactions to PhilPaSS-
Remitting/sending CAS for settlement.
bank retrieves
Reply File
1 Remitting/Sending
bank sends 6 Generates Reply File with
transactions (Input Settlement Status
File) from
9:00AM-3:00PM.
2 System validates
transactions. Summarizes
valid transactions per
REMIT Gateway PhilPaSS beneficiary/receiving bank.
Server Server

23. PhilPaSS
REMIT SYSTEM
Beneficiary/ Receiving Bank
(After Processing &
Settlement of Remittances)

24. 3 Receiving Bank posts transaction
to the account of
Beneficiary/Customer.
PhilPaSS Server
1 BSP processes 5 BSP generates Report on OFW
settled transactions remittances (Annex 2) after 4:00PM
and creates the following banking day; sends to
Beneficiary File (per Gateway Server for information of
Receiving Bank); remitting
sends file to Gateway bank. Receiving Bank
Server. (9AM-5:45PM)
4 Receiving bank updates Beneficiary
file with Posting Time Stamp, if
posted. If not posted, indicate reason.
(up to 4:00PM the following banking
day)
BSP Network
2 Receiving Bank retrieves
REMIT Gateway Server
Beneficiary File

25. Timelines
• The Remitting Bank can send as many files
to PhilPaSS from 9:00 am to 3:00 pm.
• The PhilPaSS processes and settles the files
sent by Remitting Bank and provide feedback
of the status of settlement within 5 seconds.
• Details of all transactions settled will be sent
to the Beneficiary Bank for credit to the
accounts of the ultimate beneficiaries on the
same day.
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26. Feedback Mechanism
• Upon credit to the account of the ultimate
beneficiary, the Beneficiary bank will submit to
BSP status of each transactions.
• For unposted transactions due to invalid acct
number, closed or dormant account or other
erroneous parameters, the Beneficiary bank is
given up to 4:00 pm the next banking day to
submit status of the transactions and return the
corresponding money to the remitting bank.
Failure to submit updates will be subject to penalty
for every day of delay.
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27. Fees
• The participating banks will set the Front-end
fees to be collected by the Remitting bank from
the remitter.
• BSP-PhilPaSS will charges the bank a P5.00
transaction fee for each remittance transaction.
• The banks agreed (as indicated in the MOA) that
a standard rate of P50.00/transactions will be
collected by the Beneficiary Banks as back-end
processing fee.
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28. The PhilPaSS REMIT System
(Domestic Remittances)
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29. DOMESTIC REMITTANCES PROPOSED TRANSACTION FLOW &
FEEDBACK MECHANISM DIAGRAM
Remitting Banks Remitting Banks – are banks that
receive remittances from the
remitter. These could be
commercial banks, thrift
banks or rural banks.
BSP PhilPaSS Transactions may originate
from Metro Manila or from
the provinces, cities
Feedback mechanism – requires that
participating beneficiary banks need to
or municipalities.
send status to PhilPaSS of the time the
remittance has been credited to the
beneficiary’s account. Failure of the
beneficiary bank to send said status,
the system will automatically debits
back the bank for the remittance.
Beneficiary Banks – are the banks Beneficiary Banks
where the remittances are
credited and where the Beneficiaries
beneficiaries maintain
accounts. Account

30. DOMESTIC REMITTANCES PROPOSED TRANSACTION FLOW
Remitting Bank BSP-PhilPaSS REMIT System Beneficiary Bank
8.Upon posting of the file of
remittances for deposit to other banks
by the remitting banks, the system 4. Upon notification that
1. Extracts from its records aggregates the records by beneficiary its DDA has been credited,
domestic remittances for bank and settles the transactions by the Beneficiary bank,
deposit to other banks and debiting the DDA of the Remitting Bank downloads from the REMIT
transmit the file to the BSP- and crediting the DDA of the gateway the details of the
PhilPaSS REMIT gateway . Beneficiary Bank. depositors/ beneficiaries
3. The REMIT System creates for further crediting of
7. The Remitting Bank, the Beneficiary file for each of the their accounts.
upon receipt of the banks credited in the BSP-REMIT
notification from the BSP, gateway. 5. The Beneficiary bank
will inform the remitter that sends Status Report to the
the remittances have been 6. The BSP-REMIT, upon receipt of the
BSP-REMIT gateway once it
Status Report will notify the Remitting
received by the has credited the account of
Bank that the remittances have been
beneficiaries. its depositor/beneficiary.
received by the beneficiaries

31. I am ready na for your
questions
po!