BSP says cash withdrawal cap was agreed to after consultation with banks

THE Bangko Sentral ng Pilipinas (BSP) said its P500,000 cap on cash withdrawals to make large kickbacks from infrastructure projects more traceable was arrived at following due study and consultation with the banking industry.

- Katherine K. Chan

“It wasn’t a knee-jerk reaction,” BSP Deputy Governor Zeno Ronald R. Abenoja told Business World on the sidelines of a Senate hearing on Thursday. “It was well-considered. We looked at other countries’ experiences. So, it was carefully thought out... and we did consult the banks, the feedback that the banks were getting from their clients and among themselves.”

Sen. Francis Pancratius N. Pangilinan had asked the Senate plenary if the regulation was a knee-jerk reaction to revelations that nearly P500 million in cash was withdrawn over two days by contractors linked to the flood control scandal.

Mr. Pangilinan also said he has received complaints from banks, depositors and small businesses about the P500,000 cap.