The Bangko Sentral ng Pilipinas’ (BSP) peso-denominated real time gross settlement system (RTGS PS) or the PhilPaSSplus settled and processed 374,986 transactions in the third quarter 2023, up by 3.2 percent year-on-year.

The July to September transactions recorded a higher increase compared to the second quarter or April to June which grew by 1.9 percent.

In a report, the BSP said “the expansion in the volume of PhilPaSSplus transactions in Q3 (third quarter) 2023 was driven by the 10.1 percent and 8.4 percent y-o-y (year-on-year) increase in transactions made through financial market infrastructures (FMIs) and clearing switch operators (CSOs) and between financial institutions (FIs), respectively.”

Last year, the BSP approved a round of rules for PhilPaSSplus after it was designated as a systemically important payment system (SIPS).

The BSP updated and amended the RTGS PS rules since as SIPS, it could pose systemic risks and threaten the stability of the National Payment System (NPS), which ensures the circulation of money or movement of funds in the country.

In a circular memo (Memorandum No. M-2022-049) which was approved last Nov. 22, 2022, the BSP said the RTGS PS is “critical for maintaining price and financial stability, as well as preserving public interest.”

It added that “this payment system ensures the smooth flow of funds between financial institutions that maintain settlement accounts with the Bangko Sentral (and) also facilitates funds transfers in financial markets where these institutions trade securities and foreign currencies for business and risk management purposes.”

The BSP owns and manage the RTGS PS. The updated rules applied to all RTGS PS participants such as banks and other financial institutions, FMls, CSOs, and critical service providers (CSPs).

The Monetary Board oversees the RTGS PS Management Committee or ManCom responsible for its “safe, efficient, and reliable operation” and to make sure the SIPS is compliant with the NPS and other regulations.

The ManCom’s functions include the review of policy proposals and amendments to the operation of the payment system and to implement programs, policies, and procedures, to ensure that the operation of the RTGS PS aligns with global standards or best practices.

The ManCom is also tasked to collaborate with the industry, local regulators, and foreign central banks.

The new rules clarified the participants to the RTGS PS. As defined by the BSP, the FMIs are infrastructures interlinked with the RTGS for the settlement of security, foreign exchange, and other financial market transactions.

The CSOs are clearing organizations with BSP authority to interconnect with the RTGS system while CSPs are technology companies that provide solutions vital to the operation of the RTGS PS.