The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas, approved a new circular setting out the framework for banks to offer a basic deposit account.
The board said the move would promote account ownership among the unbanked individuals in the country.
“Ownership of an account provides Filipinos the tool to save and transact money in a safe, convenient and affordable manner. It can unlock access to a wider range of financial services to meet their various needs, including credit, insurance and investments,” the board said.
The World Bank Global Findex (2014) estimated that only 31.3 percent of Filipino adults had formal accounts. The usual barriers included costs, lack of money, lack of documentary requirements and perceived low utility of a bank account, among others.
The basic deposit account framework addresses these observed barriers. The minimum key features of the account include simplified know-your-customer requirements; an opening amount of less than P100; no minimum maintaining balance; and no dormancy charges.