services. for the bsp, this starts with ensuring more filipinos have access to a transaction account – in particular, an account that they can use not only to save money, but also to directly send and receive funds to and from anyone ; in other words, an account that can be used for digital payments. this is why our financial inclusion and digital payments agenda necessarily go hand - in - hand. one is both an enabler and a requisite for the other. digital payments – that is, account to account fund transfers – make accounts a valuable and practical tool for anyone, even to those who say they do not have money to save. 1 / 3 bis central bankers'speeches a transaction account makes it easy, affordable, and convenient to pay bills, to send money to family wherever they are, pay government fees, and make online purchases. we do not have to take time off our weekends and free time just to fall in line to do these transactions. all we have to do is use our mobile phones. our vision is to have more market vendors, jeepney, and tricycle drivers accepting digital payments through qr code linked to transaction accounts. this means we do not have to always bring cash with us when we go to work or the market – thereby reducing risk of theft. for the market vendors and drivers, that means they do not have to handle cash which make them less vulnerable to counterfeits aside from theft. the benefit of using transaction accounts extends to the employers. when employers pay salaries directly to the account of their workers through pesonet, it can potentially lower administrative and overhead costs, and reduce risks associated with cash distributions during paydays. as people and businesses use digital payments, they are able to build a rich digital footprint that can be used by banks, fintechs and other lenders in evaluating and granting credit. this means people can have better and wider financing options. digital payments also underpin a whole range of innovative digital services requiring the instant transfer of funds between transactors. the use and popularity of apps like airbnb, grab and lalamove are made possible because of digital payments. clients use their account - linked digital wallet or credit card to pay the service providers - the drivers and the property and food stall owner – which helps build trust and reliability in the transactions in the app. these digital payment - supported apps are not only convenient for users but also gives wider access to business opportunities and markets to our micro entrepreneurs and high

the penalty that may be imposed for reserve deficiencies was relaxed and subjected to a reduced maximum limit until 31 march 2021. also, the notification requirements related to changes in banking days and hours and temporary closure of bank units and supervised financial institutions offices / service units and submission of documentary requirements for type c licenses were further relaxed. moving forward, we reaffirm our continued partnership with ctb in the pursuit of remaining financial sector reforms. 1 / 3 bis central bankers'speeches our ‘ test and learn ’ approach or regulatory sandbox remains useful in dealing with increasing digital financial innovations in the market. one of the significant outcome of our ‘ test and learn ’ approach that has graduated to full implementation involved a pioneering rural bank that engaged a cloud service provider for its core banking system. indeed, one critical transformation already taking place in the banking industry is the move towards going “ cloud - based ” as more than 20 financial institutions have transitioned towards hosting their core banking solutions in the cloud. however, there has been an uneven take up of cloud banking among the industry as rural banks represent a disproportionately larger share of cloud adopters. this is something that we hope to understand more through discussions with the industry. for thrift banks, this should mean two things. first, shifting to the cloud must be seen as an opportunity, as even rural banks have maximized the benefits of scalability of financial services, from mobile and electronic banking to near field communication ( nfc ) payments. second, thrift banks must embrace the change of mindset from a “ brick and mortar ” thinking to embracing the promise of digital transformation in providing crucial banking services to its clients. moreover, smaller thrift banks can take advantage of these available digital technology to lower operational costs. the opportunities are limitless, but risks, business synergies and contribution to growth have to be carefully considered. the covid - 19 pandemic has also accelerated the digitalization of financial services to support resilience. innovative solutions could support the reopening of the economy while minimizing resurgence of the virus. widely reliable and affordable access to internet will be critical to ensure business continuity under the new normal. the shift to e - commerce, digital financial services, digital public service and social protection delivery which started during the lockdown will likely to continue even after the relaxation of lockdowns. under its digital payments transformation roadmap, the bsp aims to shift at least 50 percent of retail payment transactions to digital, and