BSP clarifies P500,000 cash withdrawal rule

The Bangko Sentral ng Pilipinas (BSP) clarified that its new rule on large-value cash transactions does not impose an outright cap on withdrawals, assuring the public that depositors and businesses can still access funds exceeding P500,000 as long as these are supported by valid documents and legitimate purposes.

- By KEISHA TA-ASAN

In a memorandum issued by the BSP’s Financial Supervision Sector, the central bank released a set of frequently asked questions to address public confusion and ensure consistent implementation of Circular 1218, which took effect on Oct. 7.

“The new regulation will not prevent customers from accessing or withdrawing their funds,” the BSP said, adding that the measure “is not intended to burden or financially exclude legitimate private businesses and government-related transactions.”

It emphasized that customers may withdraw more than P500,000 in cash provided that proper identification and supporting documents such as proof of payment for hospital bills or business transactions are presented.

Circular 1218 requires banks and other BSP-supervised financial institutions to apply enhanced due diligence (EDD) for cash transactions exceeding P500,000 per banking day.