Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
 First Regular Session
HOUSE BILL NO. _______________
Introduced by ANG PROBINSYANO 
Party-List Representative Alfred Delos Santos
EXPLANATORY NOTE
Despite the growing relevance of financial technology mechanisms in the
Philippines, there remains a huge gap in reaching financial inclusivity in our
country, especially in rural areas. Financial awareness and literacy remain to
be a huge aspect of rolling out financial technology and many Filipinos, even
those who are engaged with such technology, are unaware of digital options
(BSP, 2017). Moreover, even if people are aware of such options, Filipinos
hesitate  to  share  personal  information  with  such  platforms  due  to
cybersecurity issues that have been plaguing online financial productivity
and platforms. Other issues  pose barriers  to the inclusion  of Filipinos  in
digital finance such as access to basic financial products and fragmented
financial and business institutions.
The proposed bill addresses all of these problems. It is the responsibility of
the State to bring about financial inclusivity, especially for those living in
rural and underdeveloped areas through mechanisms that ensure equitable
access to financial technology. It addresses issues of financial awareness,
trust, inclusion, and access. This bill aims to empower Filipinos to be more
financially  stable  and  capable  to  pursue  personal  and  economic
development.
In view of the foregoing, immediate approval is highly recommended.
 ALFRED C. DELOS SANTOS
Representative, Ang Probinsyano
Partylist
July 13, 2022
4:43 pm
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
 First Regular Session
HOUSE BILL NO. _______________
Introduced by ANG PROBINSYANO 
Party-List Representative Alfred Delos Santos
AN ACT PROMOTING RURAL FINANCIAL INCLUSION AND LITERACY
Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:
SECTION  1.  Short Title.  –  This Act shall be known  as the “Rural
Financial Inclusion and Literacy Act.”
SEC.  2. Declaration of Policy.  –  It is the policy of the State to promote
financial  empowerment  and  reduce  financial  vulnerabilities  among  its
citizens by taking proactive measures in developing technological capacities
of  various  financial  institutions  in  the  rural  areas  to  improve  access  to
financial  services.  Toward  this  end,  the  State  shall  promote  financial
inclusion and literacy programs   that    contribute  in   establishing  a
financial  system  to  benefit  all Filipinos, regardless of socio-economic
status, to accelerate economic growth and development especially in rural
and provincial areas. 
SEC. 3. Financial Inclusion and Digital Literacy Program. – A proactive
Financial Inclusion and Digital  Literacy Program, hereinafter referred to as
Program, is hereby established to promote the engagement with financial
service institutions such as rural banks, lending companies, insurance and
pre-need companies,  and health maintenance organizations (HMOs)  in rural
areas.  The  Program  includes  the  conduct  of  nationwide  seminars  and
workshops,  development  of  modules,  trainings  on  organizational
development  and  financial  management  on  credit  worthiness,  loan
acquisition  and  repayment,  and  wide  dissemination  of  information  and
education campaign (IEC)  materials that are tailored to different sectors.
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 The Program shall also contain a basic understanding of concepts of
financial  inclusion,  and  may  include  technical  application  to  provide  the
public  with  knowledge  and  skills  to  make  well-informed  economic  and
financial decisions. Priority sectors shall include, small farmers, fisherfolk,
and micro, small, and medium enterprises (MSMEs).
SEC.  4.  
 Program  Implementation.   –   The  Program  shall  be
implemented by the National Financial Inclusion Steering Committee (NFISC)
chaired by the Governor of Bangko Sentral ng Pilipinas (BSP). For a more
inclusive  implementation,  local  government  units,  non-government
organizations  (NGOs)  and  civil  society  organizations  (CSOs)  network,
federation   of   cooperatives,   cooperatives   specially  assisted  by  the
Department of Agrarian Reform (DAR), shall also be included.  Completion of
a component of the Program may be used to comply with the requirements
of  financial  institutions  on  various  financial  products  such  as  savings,
payment,  credit,  insurance,  pre-need  products   and  health  maintenance
services (HMOs). 
The NFISC, together with other stakeholders,  shall optimize the use of
all available  mass  media  networks  as  an effective  channel in promoting
public awareness and education about the Program. 
SEC. 5. Capacity Building for Rural Banks.  –  Rural banks, and other
financial  institutions  such  as  microfinance  institutions  and  cooperatives
operating   in the  rural  areas  shall   establish  capacity-building  programs
aimed at improving the knowledge and skills of their personnel on innovative
technologies such mobile payments, online lending, blockchain application,
cloud  computing,  application  programming  interface  (API),  and  artificial
intelligence. Cybersecurity considerations and data privacy protection  under
Republic Act No. 10175, otherwise known as the “Cybercrime Prevention Act
of 2012” and Republic Act No. 10173, otherwise known as the “Data Privacy
Act of 2021” shall be considered and incorporated in the capacity-building
program.
To further scale up the technology capabilities of rural banks, the Rural
Bankers Association of the Philippines (RBAP) may assist its member banks
by  establishing  industry-level  standards  on   internet  technology  (IT)
outsourcing and vendor management such as those pertaining with other
recognized industry  associations   such  as  other  bank  associations,
financial  technology alliances, and reputable market players in organizing
technology-focused  briefings  and  or  information  sessions  for  its  member
banks. Moreover, rural banks shall adhere to and comply with relevant BSP
rules on technology and information security risk management.
Informal financial service institutions shall be strengthened to improve
their  services  in  the  rural  areas  by  linking  them  to  formal  financial


institutions, and setting up of community trainings to institutionalize their
operation and reinforce their management capacity and governance.
SEC.  6.  National Financial Inclusion Steering Committee.  –  To further
systematically accelerate financial inclusion, the National Financial Inclusion
Steering Committee (NFISC) which is chaired by the Governor of the BSP
shall  spearhead  collaborative  efforts  to  address  regulation  and  execute
innovative 12 modes of implementation.  The NFISC is composed of heads of
the following government agencies:
(a)Department of Finance;
(b)Department of Education;
(c) Department of Trade and Industry;
(d)Department of Social Welfare and Development;
(e)Department of Budget and Management;
(f) National Economic and Development Authority;
(g)Insurance Commission;
(h)Commission on Filipinos Overseas;
(i) Securities and Exchange Commission;
(j) Philippine Statistics Authority;
(k)Philippine Deposit Insurance Commission;
(l) Cooperative Development Authority;
(m)
Department of Science and Technology;
(n)Department of Information and Communications Technology;
(o)Department of Agriculture;
(p)Department of Agrarian Reform;
(q)Department of Interior and Local Government;
(r) Department of  Labor  and Employment;


(s) Department of Transportation; and
(t) Philippine Commission on Women.
Heads  of  other  government  agencies  may  be  invited  as  NFISC
members whenever appropriate and necessary as deemed by the NFISC.
Further, the NFISC shall prepare a roadmap for the Program to cover all
regions, barangays, and the smallest units in the community, and provide for
mechanisms that protect and boost financial activities especially within the
provinces and rural areas. The road map shall prioritize areas identified with
high poverty incidence, particularly the poor and marginalized sectors of
small farmers and fisherfolk who have limited access to credit from formal
financial institutions.
Consultation with government financial institutions  (GFIs) should be
continuously  undertaken  to  address  potential  technical  or  administrative
issues to ensure the effective and efficient roll out of financial technology
among Filipinos, especially residing in rural communities and remote areas.
All these government financial institutions and agencies shall also cooperate
in the implementation of the National Strategy on Financial Inclusion, which
is  a  comprehensive  public  document  developed  through  a  broad-based
consultative process with private and public sector stakeholders involved in
financial  sector  development  to  systematically  accelerate  the  level  of
financial inclusion in the country. 
SEC.  7.  Priority  Implementation Points.  –  There  shall be  priority
agenda implementation points to establish a digital financial ecosystem that
supports  the  diverse  needs  of  all  users  in  a  manner  that  is  secure,
sustainable,  convenient  and  affordable  especially  in  provinces  and  rural
areas. These priority implementation points  include the following:
(a)Enhanced  access  to  digital  devices  by  strengthening  local
infrastructure support for digital and online platforms;
(b)Provision of automated teller machines (ATMs) and satellite rural18
bank offices;
(c) Efficient retail payments system;
(d)Expansive network of low-cost touchpoints and accredited cash agents;
(e)Democratized access to a transaction account through the utilization of
a national  identification system as mandated by Republic Act No.
11055, otherwise known as the “Philippine Identification System Act”
(PhilSys Act);


(f) Enhanced  collaboration with rural financial institutions such as rural
banks, cooperatives, micro  finance institutions,  and other non-bank
financial  institutions  (NBFIs)  such  as  lending  and  financing  and
investment  companies,  securities  dealers,  brokers,  pawnshops  and
other money service businesses;
(g)Enhanced  Technology  Empowerment  for  Education  Employment
Program  of  the  Department  of  Information  and  Communications
Technology (DICT) which provides critical information communications
technology enabled services in communities with minimal or no access
to information and government services and learning and continuous
skills development opportunities for special sectors including women,
persons with disabilities, and senior citizens.
SEC. 8.  Implementing Rules and Regulations.  –  Within ninety (90)
days after the effectivity of this Act, the Governor of the Bangko Sentral ng
Pilipinas  and  Members  of  the  NFISC  shall,  in  collaboration  with  the
representatives     from  government  financial  institutions,  Rural  Bankers
Association of the Philippines, and other stakeholders issue the necessary
rules  and regulations for the effective implementation of this Act.
SEC. 9. Separability Clause.  –  If any provision or part of this Act is held
invalid or unconstitutional, the remaining provisions or parts unaffected shall
remain in full force and effect.
SEC. 10.  Repealing Clause. – All laws, executive orders, presidential
decrees or issuances, letters of instruction, administrative orders, rules, and
regulations contrary to or inconsistent with the provisions of this Act are
hereby repealed, amended, or modified accordingly.
SEC. 11.  Effectivity.  –  This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.
Approved,