BSP makes it easier for the unbanked to open savings account

The Bangko Sentral ng Pilipinas (BSP) is making it easier for people with limited access to financial services to open a basic savings account.

The BSP’s policy-setting Monetary Board has approved a simplified know-your-customer requirements, which enables clients to open a savings account with an initial deposit of less than P100.

Basic accounts are also exempted from the minimum maintaining balance and dormancy charges and are allowed a maximum balance of P50,000.

“These features meet the need of the unbanked for a low-cost, no-frills deposit account which they can open even if they do not have the standard identification documents,” the BSP said in an emailed statement.

In return, local banks will be given a preferential 0-percent reserve requirement which will effectively lower account maintenance cost. This will not apply to regular bank accounts even if their balances fall below P50,000.

“The BSP expects that the basic deposit account will provide the much needed boost in expanding formal account ownership and usage in the country, particularly among the unserved low-income markets,” the central bank said.

Data released by the BSP earlier this month showed access to formal financial products and services in the Philippines has improved, with the number of unbanked areas rising to 571 local government units in June 2017 from 609 in 2011. —Jon Viktor Cabuenas/VDS, GMA News