Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. on Friday signed an agreement with ATM network operator BancNet linking the network with the BSP’s Philippine Payment and Settlement System to deliver safer ATM transactions, according to a press release.
BSP is the central bank of the Republic of the Philippines.
“With BancNet now part of PhilPaSS, we reduce potential settlement risks that can come from the inability of member-banks to meet ATM withdrawals,” said Tetangco in a speech during the Memorandum of Agreement signing.
BancNet is considered to operate the country’s largest ATM network with more than 5,200 ATMs for its 77 member financial institutions.
From 237 daily average transactions worth P100 billion in 2002, when PhilPaSS was opened, the system now settles an average of 4,500 transactions daily valued at more than P1.3 trillion.
Tetangco said settlement risk is "further minimized when interbank transactions are settled through funds lodged in the central bank.”
The BSP has been encouraging more financial entities under its supervision to participate in PhilPaSS. It wants to expand the usability of PhilPaSS as a payments facility that is fast, safe and efficient to benefit all banking institutions, according to a statement.
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