By Minerva BC Newman, August 30 2018; Manila Bulletin
Image Credit to Business World Online
CEBU CITY – The Bangko Sentral ng Pilipinas (BSP) has instructed its supervised banks to simplify documentation for identifying and verifying the identity of clients’ in establishing bank deposits or savings accounts.
BSP’s Cebu regional information officer Hazel Cultura told Manila Bulletin the amendment is contained in BSP Circular No. 992 based on Monetary Board resolution 58 approved last January 11.
Cultura said a study by the national community managed savings and credit associations showed that very few Filipinos have savings accounts because of the difficulty presenting documents to establish identity.
Banks usually require depositors to produce IDs which some low-income depositors do not have, Cultura said.
The present requirements for opening a bank account are at least two valid IDs or a marriage contract, two most recent ID pictures, proof of billing for water and power or a tax identification number (TIN).
With the simplified KYC system, the customer can present any document or information reduced in writing or certifications to verify identity, Cultura said.
The simplified system is part of Bangko Sentral’s efforts to encourage more Filipinos to save in banks.
The circular also introduced the Basic Deposit Account (BDA) that is designed to make it easier for Filipinos to receive and make payments or own a facility, Cultura said.
The BDA’s key features include an opening amount of at least 1100, no maintaining balance, no reserve requirement, no dormancy charges but with a maximum balance of not more than 150,000.
Deposits with a balance of more than 150,000 will be converted to a regular deposit account. Banks can still accept normal Savings Deposit Accounts (SDA) that can be withdrawn upon demand, Cultura said.