Question & AnswerQ&A (Republic Act No. 11127)
The short title of Republic Act No. 11127 is "The National Payment Systems Act."
The State recognizes that payment systems are crucial parts of the financial infrastructure of the country and it is essential that they function safely and efficiently for the stability and effectiveness of the monetary and financial system.
The State shall promote, through the Bangko Sentral, the safe, secured, efficient, and reliable operation of payment systems to control systemic risk and provide an environment conducive to the sustainable growth of the economy.
The Bangko Sentral ng Pilipinas has the authority to oversee payment systems in the Philippines and exercise supervisory and regulatory powers to ensure the stability and effectiveness of the monetary and financial system.
A 'designated payment system' is a payment system that has been designated as such by the Bangko Sentral pursuant to this Act and its implementing rules and regulations.
The Bangko Sentral can designate payment systems, require prior authority for operators, accredit payment system management bodies, issue rules and regulations, issue directives or orders, require reports, assess and collect fees, and exercise other powers to meet the Act's objectives.
Yes, under Section 8, the Bangko Sentral has the authority to own and operate payment systems as deemed necessary by the Monetary Board, and can determine who may participate or open accounts for settlement purposes in such systems.
Operators must maintain and operate a safe, efficient, and reliable payment system according to rules and regulations and establish processes for participant selection, monitoring, and self-regulation, subject to Bangko Sentral supervision.
Settlement effected in accordance with agreed payment system procedures is final and irrevocable and cannot be reversed for any reason; however, if a fund was not legally due, the amount constitutes a new monetary obligation owed by the payee to the payer.
The Monetary Board may impose fines up to One million pesos per transactional violation or One hundred thousand pesos per day for continuing violations, suspend or remove directors or officers, issue cease and desist orders, revoke certificates of authority, and order cancellation or suspension of registrations.
Willful violations of this Act, its rules or regulations, or orders issued by the Monetary Board are punishable by imprisonment of not less than two (2) years and not more than ten (10) years, or a fine ranging from two hundred thousand pesos to two million pesos, or both, at the court's discretion.
A designated manager, upon suspension of the operator's directors and officers, immediately controls, manages, and administers the operations to avert disruptions, and may recommend revocation of the operator's certificate of authority if necessary.
All payment system operators existing at the time of effectivity must register with the Bangko Sentral within six months. New operators must register within a reasonable period as prescribed by the Monetary Board before commencing operations.
No person may acquire or transfer shares resulting in ownership or control of more than ten percent (10%) of voting stock without prior approval of the Monetary Board. Such transfers without approval have no legal effect and will not be recognized.
Operators of designated payment systems, except those operated by the Bangko Sentral, must incorporate as stock corporations and meet minimum requirements prescribed by the Monetary Board.