Rizal Commercial Banking Corporation (RCBC) announced on July 4 that it would make most InstaPay transfers free for its customers. However, the Bangko Sentral ng Pilipinas (BSP) has expressed concerns regarding compliance with its new pricing regulations.
BSP's Regulatory Stance
We said that’s not compliant with the circular.
Mamerto Tangonan, BSP Deputy Governor
The BSP's Deputy Governor, Mamerto Tangonan, indicated that the bank's fee structure does not align with BSP Circular No. 1238, which aims to reduce digital transfer fees. He pointed out that the circular mandates a pricing model where fees for interbank transfers should not exceed the cost of intra-bank transfers plus a nominal switch fee.
RCBC's approach of capping the free transfers could be seen as a loophole that may not satisfy the intent of the BSP's guidelines. If a customer exceeds the 30-transfer limit, they would face a P10 charge, which raises compliance issues.
Tangonan emphasized that the pricing structure should be straightforward: transfers within the same bank should be free, while those between different banks should incur only the switch fee.
Industry Comparisons
Other banks like the Bank of the Philippine Islands (BPI) have opted for a simpler solution by eliminating fees entirely for both InstaPay and PESONet transfers. BPI's CEO TG Limcaoco stated that charging a nominal fee, such as the P1.50 switch fee, could annoy customers without significantly impacting the bank's bottom line.
RCBC's decision comes at a time when it faces scrutiny from Moody's, which has downgraded its credit outlook due to concerns over asset quality. As the bank navigates these challenges, its fee structure for digital transfers will likely be closely monitored by regulators.
The BSP's deadline for compliance is set for July 4, and it remains to be seen how RCBC will adjust its policy. Tangonan hinted at potential repercussions for non-compliance, indicating that the BSP is prepared to engage with any banks adopting similar tactics.