Question & AnswerQ&A (IRR EO NO. 170)
The title is the Implementing Rules and Regulations (IRR) of Executive Order No. 170, s. 2022, concerning the adoption of digital payments for government disbursements and collections.
The Department of Finance (DOF), in coordination with the Bangko Sentral ng Pilipinas (BSP), Commission on Audit (COA), Department of Budget and Management (DBM), Bureau of Treasury (BTr), Bureau of Internal Revenue (BIR), and other relevant government agencies.
The state policy includes promoting efficient government service delivery; enabling digital payment services for convenience and transparency; facilitating transparent distribution of financial assistance; building an inclusive digital finance ecosystem; developing ICT-capable human resources; and bridging digital infrastructure gaps while ensuring network security.
All departments, agencies, and instrumentalities of the Executive Branch, including state universities and colleges, government-owned or -controlled corporations (GOCCs), and local government units (LGUs), as well as Philippine Embassies and Consulates through the Department of Foreign Affairs.
Digital disbursement refers to a mode of payment where the government disburses money or equivalent electronic legal tender by crediting the recipient's transaction account through processes like Advice to Debit Account (ADA) or Electronic Fund Transfer (EFT), facilitated by authorized government banks or other digital payment instruments allowed by existing laws.
They must develop streamlined internal procedures; ensure accuracy of payment instructions; provide public assistance mechanisms; disburse full cash assistance with allowable top-ups; maintain accurate beneficiary transaction account databases; and perform other functions as prescribed by the Technical Working Group.
GSBs must execute payment instructions promptly; submit verified reports of successful or failed fund transfers; may collect fees subject to agreements; and notify agencies and the public of any anticipated service disruptions.
They have the right to choose and nominate their transaction accounts; the right to correct errors in account details promptly; and access to adequate information regarding digital payments and financial assistance distribution.
All covered agencies must offer digital payment modes for collections (taxes, fees, tolls), while continuing to accept cash and traditional payment forms. They must also engage secure Payment Service Providers compliant with the National Retail Payment System Framework.
The TWG develops strategies for cost-efficient procurement of payment services; provides guidance on service agreements; monitors procurement compliance; formulates standardized terms for PSPs; resolves implementation issues; develops guidelines on reports, complaints, and payment instructions; conducts communication and advocacy; and enforces compliance with EO No. 170 and its IRR.