Stakeholders oppose proposal to waive online bank transfer fees until pandemic's end

Stakeholders from the banking sector on Thursday opposed the proposal to waive online bank transfer fees and other e-payment transaction fees and charges until the end of the COVID-19 pandemic, saying it would be detrimental to banking institutions.

During its meeting, the House Committee on Banks and Financial Intermediaries took up House Resolution 1271, authored by Quezon City Representative Precious Hipolito Castelo, urging the Bangko Sentral ng Pilipinas (BSP) to indefinitely waive the fees for online bank transactions and other electronic payment services amid the COVID-19 pandemic.

In filing the measure, Castelo argued that the waiver of the fees will ease the burden of Filipinos while facing the health crisis.

The BSP, she added, should be able to compel all banks and financial intermediaries under its jurisdiction to comply with its directive to suspend transfer fees.

But Benjamin Castillo, managing director of the Bankers Association of the Philippines, stressed that it would be difficult to hold off the fees indefinitely since nobody knows for certain when the pandemic will end.

"The call of the Bangko Sentral was for the current period (until December). It is time-based but it is not on the basis of until the pandemic is over because hindi naman natin talaga alam kung kailan matatapos ang pandemic situation," he said.

"Hindi pwede natin i-establish as end of the pandemic because wala naman sa atin makakapagsabi kung kailan matatapos ang COVID-19 pandemic," he added.

Abraham Co, president of the Philippine Payments Management Inc., said that what they have been doing is to decide whether or not to lift the waiver "on a rolling basis," depending on the situation.

"So every 90 days, we come to an agreement on what to do. The next agreement is expiring at the end of this year," he said.

"Most likely, looking at the situation, we would rather be cautious on the liberal side than the other way around. In other words, even if we see a trend, we would like first to make sure that things are alright before starting to really charge," he added.

Hearing the arguments of the stakeholders, Castelo explained that the purpose of her proposal was to waive the bank transfer fees and other e-payment transaction fees "until the end of the public health emergency," or until September 2021 based on the declaration of President Rodrigo Duterte.

The President in September signed Proclamation 1021 extending the state of calamity in the country due to the COVID-19 pandemic until September 12, 2021.

But Castillo said September 2021 is still too long of a period for bank transfer fees to be waived.

Doing so, he added, will be "very damaging" to the banks.

"Ang visible sa publiko, sa lahat ng banking clients, yung mga fees na china-charge ng mga bangko. Ang hindi visible sa public yung mga cost ng mga bangko to deliver the service. Merong cost lahat yan," he said.

"The longer we waive fees, the longer the banks will have to carry the cost burden of delivering the services," he added.

Currently, several establishments have decided to waive their transfer fees until December 31 this year, including Bank of Commerce, Security Bank, Land Bank of the Philippines, Development Bank of the Philippines, and East West Bank.

"As of now, ang present arrangement for reduced or no fees for InstaPay and PESOnet is until December 2020. For sure, that situation will be reviewed again closer to that period. Pero it will be a difficult situation to do a September 2021 no fee arrangement," Castillo said. -MDM, GMA News