Question & AnswerQ&A (IRR EO NO. 170)
The title is the Implementing Rules and Regulations (IRR) of Executive Order No. 170, s. 2022.
The IRR is issued under the authority of the Department of Finance to formulate rules and regulations necessary to implement the objectives of EO No. 170 regarding adoption of digital payments in government disbursements and collections.
All departments, agencies, instrumentalities of the Executive Branch, including state universities and colleges, government-owned or controlled corporations, and the Philippine Embassies and Consulates through the Department of Foreign Affairs are covered. Local government units are enjoined to be guided by the same guidelines.
Digital disbursement refers to the mode of payment where the government disburses money or equivalent electronic legal tender by crediting the recipient's transaction account through ADA or EFT facilitated by Government Servicing Banks or other digital payment instruments allowed by law.
Covered Agencies must develop internal procedures for digital payments, verify transaction account accuracy, prepare accurate payment instructions, establish public assistance mechanisms, disburse full cash assistance amount with possible top-ups to cover withdrawal fees, maintain accurate beneficiary databases, and perform other functions as prescribed by the Technical Working Group.
They have the right to choose and nominate the transaction account for receiving funds, right to correct inaccuracies in their account details, and access to adequate information regarding digital payment of government disbursements.
The TWG develops and drives the implementation of digital payment strategies, oversees and monitors procurement of digital payment solutions, formulates standard terms for PSPs, enforces compliance, develops communication and advocacy plans, and performs other functions directed by the President.
Covered Agencies shall fully implement digital disbursements within six (6) months from the effectivity date of this IRR.
A tiered transition period not exceeding three (3) years applies, with agencies already offering digital collection implementing within 1 year and those not yet offering digital mode implementing within more than 1 but less than 3 years.
They must comply with Republic Act No. 10173 or the Data Privacy Act of 2012, its implementing rules and regulations, and relevant issuances of the National Privacy Commission in implementing digital payments.