The monetary authority in the Philippines, the Bangko Sentral ng Pilipinas (BSP) has approved the no-frills basic deposit account with no maintaining and dormancy fees, and banks that will offer it will have zero reserves as an incentive.
According to BSP Deputy Governor Chuchi G. Fonacier said the Monetary Board, the BSP's policy-making arm, has given the nod to the new guidelines last Thursday, January 11, 2018.
Fonacier revealed during a media interview that basic deposit account will have no maintaining balance and no dormancy fees. "You can even open an account (with balance of) below P100," she added.
Right now, there are some banks that allow non-interest earning savings account with just P100 maintaining balance, and as low as P1,000 for current or checking accounts.
BSP also said that basic deposit accounts will enjoy reduced KYC or "Know Your Customer," requirements but the moment the balance increases above the threshold, they will automatically be shifted to an enhanced KYC scrutiny.
The BSP also announced last week that its policy framework on basic deposit account will remove the "usual barriers" in account opening including an opening amount and maintaining balance considered too high by most new depositors, dormancy charges, and lack of identity documents.
According to the records of the BSP, as of end-June 2017, the banking industry has 44 million total depositors in current, time and savings accounts.
About 39.48 million are savings account holders, of which 33.44 million are account balances of P5,000 and below, 3.28 million maintain P5,000 to P10,000 balances, 2.19 million for the P10,000 to P15,000 deposits, and 3.77 million for deposits averaging P15,000 to P40,000. The total accounts have an outstanding balance of P11 trillion.
Source: Manila Bulletin
According to BSP Deputy Governor Chuchi G. Fonacier said the Monetary Board, the BSP's policy-making arm, has given the nod to the new guidelines last Thursday, January 11, 2018.
Fonacier revealed during a media interview that basic deposit account will have no maintaining balance and no dormancy fees. "You can even open an account (with balance of) below P100," she added.
Right now, there are some banks that allow non-interest earning savings account with just P100 maintaining balance, and as low as P1,000 for current or checking accounts.
BSP also said that basic deposit accounts will enjoy reduced KYC or "Know Your Customer," requirements but the moment the balance increases above the threshold, they will automatically be shifted to an enhanced KYC scrutiny.
The BSP also announced last week that its policy framework on basic deposit account will remove the "usual barriers" in account opening including an opening amount and maintaining balance considered too high by most new depositors, dormancy charges, and lack of identity documents.
According to the records of the BSP, as of end-June 2017, the banking industry has 44 million total depositors in current, time and savings accounts.
About 39.48 million are savings account holders, of which 33.44 million are account balances of P5,000 and below, 3.28 million maintain P5,000 to P10,000 balances, 2.19 million for the P10,000 to P15,000 deposits, and 3.77 million for deposits averaging P15,000 to P40,000. The total accounts have an outstanding balance of P11 trillion.
Source: Manila Bulletin
BSP Approves the No-Frills Basic Deposit Account Without Maintaining & Dormancy Fees
Reviewed by Phil Newsome
on
January 15, 2018
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Reviewed by Phil Newsome
on
January 15, 2018
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