Overseas Filipino Workers (OFW) stand to save P100 to P500 when sending money to the Philippines once the new Philippine Payments and Settlements System Remit System starts operating before the fourth quarter of the year.
Also known as the Philpass Remit System, the new settlement system for money transfers would eliminate third party courier services between commercial banks in remittances involving bank credits, the Bangko Sentral ng Pilipinas said Monday.
"This will reduce the cost of remitting money from the OFW remitter to the beneficiary," the BSP said.
"Under the existing system, beneficiaries pay from P150 to P550 as back-end processing fee. With the migration to the new system, the fee will be reduced to P50 for each remittance transaction as the BSP will be charging banks a minimal amount for the settlement of transactions," the BSP explained.
With the Philpass Remit System, families of OFWs would be able to save from P92 million to P922 million a year in remittance fees, the central bank said.
The central bank said the Philpass Remit System is a "safer, faster, and cheaper means of remittance transactions," as it uses the BSP-Philpass clearinghouse in moving remittances from a local bank to another bank where the OFW beneficiary maintains an account.
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New system to slash OFW remittance fees, says BSP
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