Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
EXPLANATORY NOTE 
Financial inclusion is a state wherein individuals and businesses have effective access 
to a wide range of financial services including savings, payments, credit, and insurance that 
are affordable, appropriate, and responsibly delivered. It is widely recognized as a key enabler 
of poverty reduction and inclusive economic growth.1 
Despite progress in financial technology and regulation, many Filipinos especially in 
geographically isolated and disadvantaged areas remain financially excluded. The Bangko 
Sentral ng Pilipinas (BSP) reports that the share of Filipino adults with bank accounts 
increased from 56% in 2021 to 65% in 2022.2 However, a significant portion of the population 
still lacks access to essential financial services. As of March 2025, 468 cities and municipalities 
in the Philippines were still unbanked, 45% of which is in Mindanao.3 
A major barrier to inclusion is the limited availability of banking infrastructure. Rural 
Filipinos often have to travel long distances and incur high costs just to access financial 
services. To address this, the BSP has allowed banks to utilize cash agents through retail 
outlets such as sari-sari stores, pharmacies, and convenience shops to deliver basic banking 
services like cash deposits and withdrawals, balance inquiry, fund transfer, and bills payment.4 
This bill seeks to institutionalize and expand the use of cash agents by: 
•
Establishing a legal framework to govern their operations;
•
Defining the responsibilities and liabilities of contracting banks;
•
Setting uniform eligibility and accreditation standards;
•
Providing incentives such as free training and expedited permitting for agents in remote
areas; and
•
Enabling local government units to promote financial literacy and help strengthen
community-level banking access.
To ensure consumer protection and financial integrity, the measure requires banks to 
maintain full accountability over their accredited cash agents, enforce anti-money laundering 
protocols, and ensure proper risk management controls. 
1 World Bank. (2024). Financial Inclusion Overview. https://www.worldbank.org/en/topic/financialinclusion 
2 Ta-asan, Keisha. (2023, October 25). Filipinos with bank accounts rise to 65% of population. Business World Online. 
https://www.bworldonline.com/top-stories/2023/10/25/553449 
3 Bangko Sentral ng Pilipinas. (2025, June 27). Unbanked cities and municipalities in the Philippines as of 31 March 2025. 
https://www.bsp.gov.ph/Lists/Directories/Attachments/10/unbanked.pdf 
4 BSP Circular No. 940, Series of 2017. Guidelines on Cash Agent 
Operations. https://www.bsp.gov.ph/Regulations/Issuances/2017/c940.pdf 
August 14, 2025
2:10 pm
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This bill reinforces the objectives of the National Strategy for Financial Inclusion and 
aligns with the BSP’s Digital Payments Transformation Roadmap to digitize 60-70% of retail 
payments by 2028.5 By making banking more accessible to the grassroots, this bill supports 
inclusive economic development, enhances household financial resilience, and promotes 
equitable growth.  
This measure was approved on third reading by the House during the 18th Congress 
and was subsequently refiled during the 19th Congress. 
In view of the foregoing, the immediate passage of this measure is earnestly sought. 
HON. MIGUEL LUIS R. VILLAFUERTE 
HON. VINCENZO RENATO LUIGI R. VILLAFUERTE 
HON. TSUYOSHI ANTHONY G. HORIBATA 
HON. TERRY L. RIDON 
5 Cigaral, Ian Nicolas. (2025, July 8). Almost 60% of Philippine retail payments now digital. Inquirer.net. 
https://business.inquirer.net/534532/almost-60-of-ph-retail-payments-now-
digital#:~:text=BSP%20deputy%20governor%20Mamerto%20Tangonan,in%20the%20country%20by%202028. 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
AN ACT ENABLING BANKS TO EXPAND SERVICE DELIVERY CHANNELS THROUGH 
CASH AGENTS AND PROVIDING GUIDELINES THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. — This Act shall be known as the "Bangko sa Baryo Act." 
SECTION 2. Declaration of Policy. — The State recognizes the vital role of banks in 
providing an environment conducive to the sustained development of the national economy. 
Towards this end, the State shall create an enabling regulatory environment for innovations 
and allow banks to exponentially expand each through cash agents and serve a wider client 
base, particularly in the low-income and rural areas. 
SECTION 3. Definition of Terms. — For the purposes of this Act: 
(a) Cash Agent refers to any person with a retail outlet such as but not limited to
convenience stores, pharmacies and other highly accessible retail outlets that
deliver bank services provided in Section 7 of this Act.
(b) Contracting Bank refers to any bank requesting authority from the Bangko Sentral
ng Pilipinas (BSP) to expand service delivery channels through cash agents.
(c) Remote area refers to an area that either is a long distance from highly populated
settlements or lacks transportation links that are typical in more populated areas
duly-identified by the concerned Local Government Unit (LGU) in coordination with
the BSP.
(d) Person refers to a natural or juridical person.
The Monetary Board may, by regulation, further define or clarify terms used in this Act 
consistent with the declared State policies above. 
SECTION 4. Eligibility Requirements for Cash Agents. — A Cash Agent may file an 
application with a Contracting Bank provided that the following requirements are met: 
(a) It is a duly-registered business in the Philippines;
(b) It has engaged in commercial activity for at least three (3) months;
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(c) It has conducted its commercial activities continuously in a place and area that is 
known to the public, and possesses sufficient capacity to properly operate electronic 
devices; and 
 
(d) It has necessary infrastructure to undertake banking operations. 
 
SECTION 5. Preliminary Screening. — Upon submission of the eligibility requirements for a 
Cash Agent, the Contracting Bank shall conduct a preliminary screening of the documents 
ensuring that: 
 
(a) The result of the preliminary screening shall be released within five (5) working 
days; 
 
(b) In case a Cash Agent fails the preliminary screening, the Contracting Bank shall 
return the documents and notify the Cash Agent of the grounds for failure. The 
Cash Agent may re-submit the documentary requirements within thirty (30) day 
from denial; and 
 
(c) In case a Cash Agent passes the preliminary screening, the Contracting Bank shall 
forward the application to the BSP: 
 
 
Provided, That, the Contracting Bank shall have an electronic banking solution to 
implement its cash agent operations and comply with the requirements of Part Seven of the 
Manual of Regulations for Banks (MORB), on the Guidelines on Electronic Banking Services 
and Operations. The bank shall deploy its cash agents a device through which its customers 
can perform secure online, real-time deposit, and withdrawal transactions on their own bank 
account, fund transfers, bills payment, and self-service transactions: Provide, further, That the 
Board of Directors of the Contracting Bank shall adopt clearly-defined written policies, 
procedures, and controls for its Cash Agent operations, including Cash Agent selection, 
exercise of due diligence, and customers care arrangements. 
 
SECTION 6. Evaluation Process. — The BSP shall create an inline evaluation process for a 
Cash Agent application while ensuring that: 
 
(a) Cash Agent demonstrates good reputation and credit history, has no previous civil 
and criminal record, and has a deposit account with the Contracting Bank against 
which all bank transactions will be conducted; 
 
(b) The result of the application shall be released within seven (7) working days upon 
the application by the Contracting Bank; 
 
(c) In case an application shall be rejected, the applicant shall be given a registered, 
written notification that indicated and explains the ground/s for rejection; and 
 
(d) In case an application shall be approved BSP shall issue an Authority to Utilize As 
Cash Agent to Contracting Bank valid for two (2) years. The Authority to Utilize As 
Cash Agent shall be displayed conspicuously in the Cash Agent’s retail outlet. 
 
SECTION 7. Revocation of Authorization. — The BSP shall revoke the Authority to Utilize 
As Cash Agent if a Cash Agent no longer meets the standards set to qualify for the 
requirements under this Act. 
 
SECTION 8. Bank Transactions and Services. — A duly-authorized Cash Agent may 
perform any or all of the following bank transactions/services: 


 
(a) Accept and disburse cash on the bank’s behalf in connection with the following self-
service transactions of customers: 
(i) 
Deposit and withdrawal transactions performed by the customer on 
one’s bank account; 
(ii) 
Fund transfers performed by the customer; 
(iii) 
Bills payment; and 
(iv) 
Payments due to government institutions, such as contributions to the 
Social Security System and premiums payable to the Philippine Health 
Insurance Corporation, PAG-IBIG and others; 
 
(b) Collect and forward applications for opening a savings account; 
 
(c) Forward loan application documents to Contracting Bank; 
 
(d) Perform Initial Customer Identity Verification: 
(i) 
Conduct customer due diligence (CDD) investigations in opening low 
transactional and low risk accounts or accounts subject to deposit and 
transactional limits; 
(ii) 
Prevent anti-money laundering and countering financing of terrorism 
activities; 
 
(e) Other transactions: 
(i) 
Payment (including loan repayments) using credit and debit cards, 
checks, and cash; 
(ii) 
Transfers between bank accounts including those to be remitted to other 
banks; 
(iii) 
Balance inquiries; and 
(iv) 
Check encashment. 
 
SECTION 9. Investment Incentives. — A Cash Agent that establishes operations in a remote 
area shall be entitled to the following incentives: 
 
(a) Free training of Cash Agent personnel on various bank processes conducted by the 
BSP; 
 
(b) Expedited processing of permits and certificated that are requisites to business 
registration and operation; and 
 
(c) Expedited processing of local government permits and other related documents. 
 
 
The Department of Trade and Industry (DTI) shall require the Securities and Exchange 
Commission 
(SEC) 
and 
the 
local 
government 
unit 
(LGU) 
 involved to create mechanism for expedited processing from application to approval. 
 
SECTION 10. Role of LGUs. — The concerned LGU shall encourage and provide incentives 
to a Cash Agent in relation to the purpose of this Act pursuant to Republic Act No. 7160, 
otherwise known as the Local Government Code of 1991. 
 
 
The concerned LGU shall conduct training programs in the barangay on financial 
literacy and capacity-building to increase understanding of different financial services and 
products. 
 
SECTION 11. Subcontracting Agents. — A Cash Agent cannot subcontract its operations or 
business to third parties. 


 
SECTION 12. Agent Exclusivity. — BSP may permit temporary agent exclusivity for a period 
not exceeding two (2) years. Otherwise, the Cash Agent shall enter into an agreement with 
another Contracting Bank. 
 
SECTION 13. Fees. — A Cash Agent may set customer fees and charge customers directly: 
Provided, That the Contracting Bank and the Department of Trade and Industry shall monitor 
such pricing for signs of exploitation or customer confusion. 
 
SECTION 14. Principal Liability for Agents. — The Contracting Bank is liable for all actions 
and omissions of the Cash Agent, provided such act is within the bounds of the agency. 
 
 
The Contracting Bank shall exercise due diligence to ensure its Cash Agents comply 
with applicable rules, regulations, and policies on anti-money laundering, consumer 
protection, bank secrecy, and customer data confidentiality. 
 
SECTION 15. Implementing Rules and Regulations. — The BSP, in coordination with the 
Anti-Money Laundering Council, Insurance Commission, a representative from the Union of 
Local Authorities of the Philippines and the DTI shall promulgate, not later than thirty (30) days 
upon the effectivity of this Act, the necessary rules and regulations for its effective 
implementation. 
 
SECTION 16. Separability Clause. — If any section or part of this Act is held unconstitutional 
or invalid, the other sections or provisions not otherwise affected shall remain in full force and 
effect. 
 
SECTION 17. Repealing Clause. — All laws, decrees, executive orders, rules and 
regulations, issuances or any part thereof inconsistent with the provisions of this Act, are 
hereby repealed, amended, or modified accordingly. 
 
SECTION 18. Effectivity. — This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or in a newspaper of general circulation. 
 
 
Approved,