BSP finalizing framework for clearing switch operations

The Bangko Sentral ng Pilipinas (BSP) is finalizing a regulatory framework to ensure the efficiency of clearing switch operations within the national payment system, particularly the automated clearing houses under the National Retail Payment System.

- Keisha Ta-asan

The regulator has made available a draft circular on the proposed guidelines for industry players to comment until Dec. 11.

The BSP said efficiency is the presence of quick and affordable payment means which are fit for the purpose of the transactions as well as the needs of the users and the participants.

In line with this, clearing switch operators (CSOs) are expected to design and implement effective and sound governance, including management of significant risks. They should also define and monitor measurable and achievable goals and key performance indicators, such as minimum service levels, risk-management expectations and business priorities.

CSOs should also ensure reliable and consistent service availability with prompt issue resolution, enable fair and open access of participating institutions to the system as well as facilitate and promote interoperability among the participating institutions.