Republic of the Philippines /
HOUSE OF REPRESENTATIV
Quezon City

TWENTIETH CONGRESS
First Regular Session

2753

House Bill No.

Introduced by Representative Julius Cesar “Jay” V. Vergara

EXPLANATORY NOTE

This bill mandates the waiver of transfer and transaction fees imposed by
financial institutions on fund transfer and disbursement of funds involving
financial or cash aid programs of the government for indigents.

The modernization of cash disbursement through banking and payment
systems has alleviated the quality of life of indigent Filipino beneficiaries of
government aid programs by eliminating the transportation costs and opportunity
costs of personally going to the offices of government agencies.

However, some transactions such as intra-bank transactions carry fees that
burden the indigent Filipino who needs every peso to survive.

This proposed measure aims to alleviate the financial burden on indigent
beneficiaries, the most vulnerable members of the society, by ensuring that they
receive their entitled benefits in full, without deductions for electronic fund
transfers and transaction fees. These fees, which are often charged by financial
institutions when processing electronic fund transfers or on ATM withdrawals
made with other banks, significantly reduce the amount of cash aid received by
the beneficiaries, thereby impeding their ability to meet basic needs such as food,
shelter and healthcare.

Hence, to address this issue, there is a need to waive these electronic fund
transfer and transaction fees imposed by banks or financial institutions on the cash
aid provided by the government for indigent beneficiaries. While currently, it is
only the Pantawid Pamilyang Pilipino Program (4Ps) which are disbursed through
acash account through Landbank, moving forward, this bill aims to waive all other
future transaction fees of government aid disbursed through electronic banking or
payment systems.


In view of the foregoing, the immediate passage of this bill is earnestly

sought.
ane)

JULIUS CESAR “JAY” V. VERGARA
Third District of Nueva Ecija


Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

TWENTIETH CONGRESS
First Regular Session

2753

House Bill No.

Introduced by Representative Julius Cesar “Jay” V. Vergara

AN ACT
MANDATING THE WAIVER OF TRANSFER AND TRANSACTION FEES
IMPOSED BY FINANCIAL INSTITUTIONS ON ELECTRONIC TRANSFER
AND DISBURSEMENT OF FUNDS INVOLVING FINANCIAL OR CASH AID
PROGRAMS OF THE GOVERNMENT FOR INDIGENTS

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

Section 1. Financial institutions engaged in the electronic transfer or
disbursement of financial or cash aid programs of the government for indigents,
including the Pantawid Pamilyang Pilipino Program (4Ps), Assistance to Individuals in
Crisis Situations (AICS) Program, and Social Pension For Indigent Senior Citizens and
other similar social programs of the government for indigents, shall waive any transfer
or transaction fees imposed upon such electronic transfer or disbursement to indigent
beneficiaries.

For the purpose of this Act, financial institutions refer to banks and non-bank
payment service providers authorized to accept government funds and perform
payment services on behalf of government entities to facilitate the payment of
government financial aid to indigents.

Section 2. The waiver of transfer or transaction fees under this Act shall apply
on electronic transfers and machine withdrawals of the financial or cash aid fund by
the beneficiaries from banks or e-wallets and other digital platforms that allow users
to store, send and receive money using mobile phones or other electronic devices.

The Bangko Sentral ng Pilipinas shall, in coordination with the Department of
Social Welfare and Development and financial institutions, devise a scheme to identify
that such fund is financial aid provided under the social programs of the government
for indigents and is not subject to transfer and transaction fee charges.


Section 3. Any person who imposes transfer or transaction fees on such
electronic transfer or withdrawal of government aid to indigent beneficiaries in
violation of Section 1 of this Act shall be punished by a fine of Five Hundred Pesos
(Php500.00) for each transfer or transaction fee charged.

If the offender is a corporation, partnership, association, agency or other
juridical entity, the penalty shall be imposed on the officer or officers of the
corporation, partnership, association, agency or other juridical entity who caused the
violation.

Section 4. Within sixty (60) days from the approval of this Act, the Bangko
Sentral ng Pilipinas shall, in consultation with the Department of Social Welfare and
Development, promulgate the necessary rules and regulations for the effective
implementation of this Act.

Section 5. All laws, decrees, executive orders, rules and regulations, or parts
thereof which are contrary to or inconsistent with the provisions of this Act are
repealed or amended accordingly.

Section 6. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,

v