Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No, 7714

Introduced by Hon. Robert Ace S. Barbers

AN ACT ESTABLISHING THE PHILIPPINE PUBLIC PAYMENT SYSTEM
EXPLANATORY NOTE

This bill seeks to establish a Philippine Public Payment System that enables
government authorities and institutions to transfer money, such as tax refunds,
government subsidies, social ameliorations, pensions or the likes, directly to a citizen's
bank account,

The Philippine government is gradually adapting to the changing demands of the
digital information age. Bangko Sentral ng Pilipinas (BSP), for instance, recently
allowed government institutions to collect payments and remittances through
electronic financial services. However, collections are currently the only transaction
that is digitized. For the government to truly achieve digital transformation, it must also
digitize the way government institutions and authorities make payments to the citizens.

In an effort to further streamline payment and settlement processes, the government
will implement a system in which all payments made by its institutions and authorities
will be deposited directly into a citizen's bank account.

This payment system will reduce the number of physical cash transactions, thereby
bringing faster and more efficient service to the public. Distribution of government
subsidies and ameliorations will be much easier . This will likewise reduce bureaucracy
that could minimize corruption,

In view of the foregoing, immediate approval of this bill is eamestly sought.

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HON. ROBERT AC! iS. BARBERS
a District, ‘Sufigao del Norte


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. 2714

Introduced by Hon. Robert Ace S. Barbers

AN ACT ESTABLISHING THE PHILIPPINE PUBLIC PAYMENT SYSTEM

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 “Philippine Public
Payment Act”

SECTION 2. Declaration of Policy. - The State recognizes the vital role of
information and communication technology in nation-building. The State also
recognizes the need of ease of doing business and efficient delivery of goods and
services to the general public. Toward this end, the State shall achieve digital
transformation by digitizing the way government institutions and authorities make
payments to the citizens.

SECTION 3. Objectives. — This Act aims to promote ease of doing business
and seamless service delivery to reduce bureaucracy and minimize corruption, as welll
as to strengthen financial inclusion of citizens.

SECTION 4. Public Payment. - All payments made by the government
institutions and authorities, such as but not limited to tax refunds, pensions,
government subsidies, social ameliorations, shall be directly deposited into a citizen's
bank account.

SECTION 5. OneAccount. — All citizens of the Philippines who are eighteen
(18) years old and above and have a PhilSys Number (PSN) shalll have a government
bank account called OneAccount.

OneAccount is the citizen's bank account where all payments to him/her from
the government institutions and authorities shall be directly deposited.

Once a citizen has been issued a PhilSys Number, a OneAccount shall be
automatically created for him/her by the government for purposes of this Act.

Only one OneAccount shall be created for each person. If one has an existing
bank account in a government bank, he can designate the same as his OneAccount.


SECTION 6. Fees and Charges. — Subject to existing banking rules and
regulations, opening an account and maintaining the same in government bank for
purposes of this Act is free of charge. All other fees and charges are likewise waived.

SECTION 7. Applicability of Bank Secrecy Law. — The Bank Secrecy Law
covers OneAccount.

SECTION 8. Bangko Sentral ng Pilipinas (BSP) . - The Bangko Sentral ng
Pilipinas (BSP) shall be the primary implementing agency to carry out the provision of
this Act. The BSP shall collaborate with Department of Information and
Communications Technology (DICT) for technical assistance.

SECTION 9. Penalties. — Any violation of this law will subject the offender upon
conviction, to an imprisonment of not more than five years or a fine not more than One
Million Pesos (P1,000,000.00) or both, in the discretion of the court.

SECTION 10. Funding. — The amount necessary to implement the provisions
of this Act shall be included in the General Appropriations Act.

SECTION 11. Implementing Rules and Regulations. — Within sixty (60) days
from the effectivity of this Act, the BSP and DICT shall promulgate rules and
regulations to effectively implement this Act.

SECTION 12. Repealing Clause. — All laws, orders, issuances, circulars, rules
and regulations or parts thereof, which are inconsistent with the provisions of this Act
are hereby repealed, modified, or amended accordingly.

SECTION 13. Effectivity Clause. — This Act shall take effect fifteen (15) days
after its publication in at least two (2) newspapers of general circulation.

Approved.