Question & AnswerQ&A (BSP CIRCULAR NO. 232)
The Circular amends the Manual of Regulations for Banks and Non-Bank Financial Institutions on the applicability of DOSRI rules to credit card operations of banks and non-bank financial institutions authorized to engage in quasi-banking functions.
DOSRI stands for Directors, Officers, Stockholders, and their Related Interests.
Credit card operations of banks for DOSRIs are not subject to DOSRI regulations provided the credit card privilege is available to all qualified persons under selective criteria, and the DOSRI reimburses the billed amount in full on or before the due date.
Transactions are subject to DOSRI regulations if the DOSRI fails to pay the billed amount before or on the due date, or if the DOSRI opts for a deferred payment scheme and the availment is booked by the bank or non-bank financial institution.
Banks must ensure that the privilege of becoming a credit card holder is open to all qualified persons based on selective criteria uniformly applied to all applicants.
Yes. The Circular also amends the Manual of Regulations to include similar provisions for non-bank financial institutions regarding DOSRI applicability in credit card operations.
They must pay the billed amount in full on or before the payment due date, similar to banks, and the credit card holder privilege must be open on the basis of selective criteria applied uniformly to all applicants.
It took effect immediately upon its adoption on March 23, 2000.
Selective criteria ensure that the credit card privilege is not exclusive to DOSRIs but is equally accessible to all qualified persons, ensuring fairness and non-preferential treatment.