QuestionsQuestions (IRR EO NO. 170)
To formulate, in coordination with BSP, COA, DBM, BTr, BIR, and other agencies, the rules necessary to implement the objectives of EO No. 170 on adopting digital payments for government disbursements and collections.
All departments, agencies, and instrumentalities of the Executive Branch, including SUCs and GOCCs (as defined), are covered. LGUs are enjoined to be guided by the rules, and Philippine Embassies/Consulates via DFA are likewise covered.
Digital disbursement is the digital payment of money (or electronic representations of legal tender) for government expenditures by crediting the recipient’s transaction account through ADA or EFT facilitated by the Government Servicing Bank, or other allowed digital payment instruments.
An authorization issued by a government entity instructing Government Servicing Banks to debit a specified amount from the government’s available account balance for payment of creditors/payees.
Covered Agencies must offer digital collection modes for taxes, fees, tolls, and other charges, and must not discount or eliminate traditional cash/other modes; those must be offered in addition to digital modes.
They must develop streamlined internal procedures (e.g., ADA and interoperable EFT), including verifying that the transaction account and account number belong to the intended recipient; ensure the accuracy of payment instructions with required details; and establish a public assistance mechanism for inquiries and help for unbanked recipients.
Up to a maximum of PHP 50.00 per beneficiary, and up to PHP 100.00 for beneficiaries located in Geographically Isolated and Disadvantaged Areas (GIDA), subject to appropriation or other lawful funding.
They can choose and nominate their transaction account (in participating entities of an interoperable EFT scheme), demand rectification of inaccurate/correctable account details, and receive adequate information regarding digital disbursement and financial assistance.
A verified list of successful or failed transfers with recipient/beneficiary information and account details, including the amount due. Reports of successful/failed transfers must be transmitted two business days after disbursement.
Subject to service level agreements guided by standard provisions to be defined by the TWG, GSBs may be allowed to collect fees for EFT services.
GSBs must notify Covered Agencies of expected service disruptions and issue public notices for guidance. Separately, Covered Agencies must include in their Public Service Continuity Plan the steps during calamities/emergencies when digital payments may not be fulfilled after exhausting all possible means, allowing non-digital payout channels in exigency.
Both Covered Agencies and GSBs must observe RA No. 10173 and its IRR, and relevant NPC issuances in implementing EO No. 170 and this IRR. PSPs must similarly process personal and sensitive personal information in compliance with RA 10173 and NPC issuances.
They must define and ensure issuance of acknowledgement receipts for digital payments, process data privacy-compliant information, meet responsibilities under standard terms of reference/conditions (including timely processing and recourse), remit intact full collections to the appropriate AGDB within the next banking day (or as prescribed), and provide a reporting facility for real-time collection details.
Representatives from DOF, DBM, BTr, BIR, and the GPPB Technical Support Office.
To develop and drive strategies for procurement of PSP/digital collection services, guide service level agreement provisions, oversee compliance with procurement laws, formulate/consider standard terms and conditions for PSPs, develop principle-based guidelines (e.g., standard reconciliation reports, complaints handling, e-OR rules, double-disbursement prevention), and enforce compliance via appropriate mechanisms.
Digital disbursements must be fully implemented within six (6) months from effectivity of the IRR. Digital collections use a tiered period not exceeding three (3) years based on operational readiness (e.g., agencies already offering some digital collection within 1 year; otherwise within more than 1 year but less than 3 years).
It must include: an action plan with indicative timeliness, a strategy for capacity development (technologies, payment systems, cybersecurity, data privacy tools), and key performance indicators/targets. The transition plan must be officially transmitted by the head of agency within sixty (60) days after effectivity of the IRR.
Initial implementation: existing appropriations for NGAs and respective corporate funds for GOCCs, subject to availability and budget/audit rules. Subsequent years: included in annual budget proposals of Covered Agencies. Costs include infrastructure/system setup and maintenance, transaction fees, and related expenses.
Each agency must submit a bi-annual report to the TWG and COA through the Secretariat containing progress of initiatives in its transition plan, updates on KPIs/targets (e.g., % of payment transactions converted to digital), and problems encountered with actions taken and recommended ways forward.
Effectivity: immediately upon publication in the Official Gazette or a newspaper of general circulation. Separability: if any provision is declared invalid, remaining provisions not affected remain in full force and effect.