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8:18 pm on 17 May 2022, Tuesday
The Bangko Sentral ng Pilipinas (BSP) on Tuesday lauded the issuance by President Rodrigo Duterte of Executive Order (EO) No. 170 on the “Adoption of Digital Payments for Government Disbursements and Collections.”
“Digital collection of payments will expedite transactions, generate savings for the government and the public, and reduce the risk of graft and corruption," BSP Governor Benjamin E. Diokno said in a statement.
The EO mandates all departments, agencies, and instrumentalities of the government, including state universities and colleges and government-owned or -controlled corporations, and enjoins local government units to utilize digital channels in the disbursement and collection of payments.
For all disbursements, including the distribution of financial assistance among others, the EO requires government entities to transfer funds directly into the recipient’s transaction account, whether held in a government or private financial institution.
The EO also requires government agencies to offer digital options for collecting taxes, fees, tolls, and other government payables. The public, however, may still transact with the government through cash payment.
Furthermore, the EO also allows government entities to include a reasonable amount for the establishment and maintenance of required infrastructure and the system for digital payments in their respective budgets.
“EO 170 provides robust support to BSP’s efforts in promoting payments digitalization and financial inclusion under the Digital Payments Transformation Roadmap (DPTR) and the National Strategy for Financial Inclusion (NSFI),” said Diokno.