BSP Details Penalties for Violations of Peso RTGS Rules

The Bangko Sentral ng Pilipinas (BSP) has released the specific penalties for offenses on the use of the Peso Real-Time Gross Settlement (RTGS) payment system. The penalties are to ensure consistent and efficient enforcement actions on RTGS participants.

The BSP-operated Peso RTGS facilitates the efficient and low-risk settlement of large-value funds transfers between financial institutions and of retail payments made by individuals, businesses, and the government through checks, ATMs, InstaPay, and PESONet.

According to BSP Governor Eli M. Remolona, Jr., “A clear, fair, and transparent policy on penalties and sanctions is important in maintaining the participants’ trust in the Peso RTGS and in gaining their support for its orderly operation.”

BSP Memorandum No. 2024-039 dated 11 December 2024 lists fines for all offenses when using the Peso RTGS, including the suspension of the participant's privileges, such as availment of the BSP’s lntraday Settlement Facility1 or participation in the Peso RTGS itself.

BSP may impose monetary penalties, sanctions, or both, depending on the gravity of the offense committed by RTGS participants, which include banks, non-banks with quasi-banking functions, non-bank electronic money issuers, financial market infrastructures,2 and clearing switch operators.3

The memorandum enhances the policy on RTGS penalties and sanctions4 in the Manual of Regulations for Payment Systems (MORPS) by providing more granular regulations. The MORPS details rules that govern RTGS participants.     

It identifies three types of offenses, namely, violations of specific operational requirements not related to reports; non-compliance with the payments system’s reporting standards; and all other violations of the Peso RTGS Rules, applicable laws, and BSP-issued rules and regulations as well as a combination of violations or multiple commissions of the same violation.

In determining a penalty, the BSP will consider all relevant circumstances and factors, including the nature of the violation, probable impact of the penalty on the participant’s financial condition, and overall effect of the violation on the Peso RTGS operation.

The BSP will likewise observe due process, giving the participants a fair and reasonable opportunity to explain their side and submit supporting evidence.

The issuance of the memorandum is pursuant to the BSP’s mandate of promoting a safe, efficient, and reliable national payment system.  As a BSP-designated systemically important payment system, the Peso RTGS performs the critical function of ensuring the smooth flow of funds across the financial system.

The Memorandum shall take effect 15 days after its publication in the Official Gazette or a newspaper of general circulation.