The Bangko Sentral ng Pilipinas (BSP) supports Executive Order (EO) No. 162 signed by President Rodrigo Roa Duterte institutionalizing the acceptance of the Philippine Identification (PhilID) or Philippine Identification System (PhilSys) number as sufficient proof of identity and age in all government and private transactions.
"EO No. 162 is supportive of the Duterte administration’s thrust to eliminate red tape in government transactions,” BSP Governor Benjamin E. Diokno said.
EO No. 162 specifies that no additional proof of identity or age shall be required upon presentation of the PhilID, PhilSys Number (PSN), or PSN derivative[1], as authenticated. Furthermore, the same may be presented in lieu of a birth certificate for transactions that require individuals to establish their age, including applications for marriage licenses as well as Land Transportation Office student permits and conductor’s licenses; enrollment for kindergarten, first grade, and Philippine Educational Placement Test passers; and Professional Regulation Commission and Bar Licensure Examinations.
For its part, the BSP recognizes that the EO will encourage Filipinos, especially the marginalized and those from low-income households with no government-issued IDs, to open bank accounts paving the way for their inclusion into the formal financial system and reducing their vulnerability to onerous lending and other practices.
In relation to this, the BSP issued Memorandum No. M-2021-057 on 21 October 2021, reminding BSP-supervised financial institutions (BSFIs) to accept the PhilID, in both physical and mobile formats, as sufficient proof of identity.
The BSP has also directed the BSFIs in the same memo to include the PhilID in their list of valid IDs displayed on their (a) counters and/or at the public entrance of their establishment, if applicable (i.e., counters, windows, and entrances); and (b) official websites, social media handles, and other consumer information channels.
"The issuance of BSP Memo No. M-2021-057, pursuant to Republic Act No. 11055 or the PhilSys Act, supports the wide scale opening of transaction accounts, particularly the Basic Deposit Account (BDA) that is designed to meet the needs of the unbanked and promote greater financial inclusion,” explained Governor Diokno.
As of third quarter 2021, 3.6 million new BDAs were opened from the fourth quarter of 2019, while active e-money accounts increased by 16.8 million between yearend 2019 and 2020.
As of 31 January 2022, a total of 7,384,553 PhilSys registrants have opened transaction accounts for free through registration sites under the co-location agreement between the Philippine Statistics Authority (PSA) and the Land Bank of the Philippines.
In addition, the PSA will soon launch a mobile version of the PhilID as a digital alternative to the physical PhilSys card and the PSA Quick Response Code Verification System, which will promote broader and seamless acceptance of the PhilID by financial institutions for various services. (BSP)
