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DSWD to forge MOA with FSPs for digital payment of SAP 2

By Charissa Luci-Atienza

The Department of Social Welfare and Development (DSWD) said on Tuesday that it will sign a memorandum of agreement (MOA) with various financial service providers (FSPs) for the digital payment of the second tranche of the Social Amelioration Program (SAP) cash subsidies.

Six FSPs–GCash, RCBC, Robinsons Bank, PayMaya, Starpay, and Unionbank have been identified as “compliant” to undertake digital electronic disbursement of cash aid through restricted transactional accounts, like bank or e-money accounts, the DSWD said.

The signing of MOA with the participating FSPs, together with the Land Bank of the Philippines (LBP) is scheduled on June 30 at the Department’s Central Office in Batasan, Quezon City

The Department had forged a MOA with the Bangko Sentral ng Pilipinas (BSP) to ensure the effective implementation of account-based and electronic disbursements of cash assistance.

“The BSP provided technical assistance to DSWD in identifying the qualified FSPs that will undertake the digital payment,” it said.

It said under the MOA, the LBP, serving as the main depository bank, will download funds to the FSPs.

“LBP will credit the program fund into the FSPs funding accounts maintained with its Batasan Branch or in other financial institutions based on the instruction and payroll documents provided by DSWD within 24 hours from receipt of payroll documents,” the Department explained.

“The FSPs, on the other hand, will credit the emergency subsidies into the beneficiaries’ restricted transactional or nominated accounts within 24 hours upon receipt of the funds from LBP,” it added.

On Monday, the DSWD announced that the digital disbursement of the second tranche of emergency subsidies is set to begin next week.

It said it is finalizing major details of the distribution process of the SAP second tranche with the LBP and the participating FSPs.

The DSWD reminded the SAP beneficiaries who opt to withdraw from the partner-outlets of the FSPs that “there will be a minimal amount of cash out fee of not more than P50 to be deducted from their subsidies” similar to the regular transaction for digital accounts.

Among the major considerations set by the BSP in determining the FSPs are the following: presence of payout partners to ensure ease and ability to cash out by beneficiaries, presence of any business model institution, historical experience in commercial roll out, and type of cash out points that may contribute to ensuring liquidity/availability of cash, the DSWD earlier said.

This was contained in the BSP’s letter sent to DSWD Undersecretary for Operations Atty. Aimee Torrefranca-Neri.

The DSWD already distributed more than P6.746 billion worth of second tranche of cash subsidies to 1,336, 635 Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries who are cash card holders.

It also conducted SAP payouts for waitlisted beneficiaries in Dona Remedios, Bulacan; Kapangan, Benguet; Baguio City; Balaoan, La Union; and Mabalacat, Pampanga.

The 11 areas covered by SAP 2 are Region III, except Aurora province, the National Capital Region (NCR), Calabarzon, Benguet, Pangasinan, Iloilo, Cebu Province, Bacolod City, Davao City, Albay Province, and Zamboanga City.

Source: Manila Bulletin (

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