Bangko Sa Baryo Act
Filed on August 4, 2025, and referred to the Committee on Banks, Financial Institutions and Currencies; it has sat in committee since August 27, 2025, with no recorded action since then.
The bill addresses financial inclusion by improving access to banking services in underserved areas.
The bill responds to ongoing challenges in financial inclusion, particularly in rural areas.
Bangko Sa Baryo Act
The Bangko sa Baryo Act aims to enable banks to expand their service delivery channels through cash agents, particularly in low-income and rural areas, by providing guidelines for their operation and establishing a regulatory framework.
Compared with current law:
Banks have limited service delivery channels, especially in rural areas.
Banks can use cash agents to expand services in remote areas.
The Bangko sa Baryo Act aims to enable banks to expand their service delivery channels through cash agents, particularly in low-income and rural areas, to improve access to banking services.
Source · full text✦ Dashed tags are AI-suggested nuance; solid tags follow the committee taxonomy.
Stalled: the bill has been pending in the committee for over two months with no further action since its referral on August 27, 2025.
No floor deliberations yet — this measure has not reached plenary. Its committee-stage actions appear under Legislative history above.
ittinlY a Offior of thie& TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session ) AUb -4 P6:00 SENATE RECEIVED BY: S. No. _ Introduced by Senator Jinggoy Ejercito Estrada AN ACT ENABLING BANKS TO EXPAND SERVICE DELIVERY CHANNELS THROUGH CASH AGENTS AND PROVIDING GUIDELINES THEREFOR EXPLANATORY NOTE The 2021 Financial Inclusion Survey published by the Bangko Sentral ng Pilipinas (BSP) noted a significant improvement in the engagement of Filipinos in formal bank accounts which reflects a positive development in financial inclusion in the country's economy. The number of Filipinos who has a formal account increased from 29% in 2019 to 56% in 2021, which means that there are additional 22 million Filipinos who opened an account. The participation in other financial services such as formal credit and investment also improved during the said period. I However, the same report also revealed that there are still challenges in our efforts to fully achieve an inclusive financial industry, particularly in the banking sector. The primary reason of majority (45%) of those who do not own an account is lack of funds or not having enough money and this is a separate matter altogether that should be addressed through a holistic approach. The other reasons cited by unbanked individuals are lack of documentary requirements (40%), lack of knowledge on the process (22%), and the perceived lack of need for an account (22%) which may be 1 2021FISToplineReport.pdf
attributed to the limited awareness of accounts as means for payment and remittance transactions. The "Bangko sa Baryo Act" seeks to create an enabling regulatory environment for innovations and allow banks to be more accessible to the people, especially those who are in remote area. This will be done through establishment of cash agents under the regulation of the BSP particularly in low-income and rural areas. To sustain the benefits of the proposed law, investment incentives will be extended to cash agents and the local government units are mandate to support their operations. In this light, the immediate passage of this bill is highly recommended. JINGGOY EJERCITO ESTRADA 2 2021FISToplineReport.pdf
SOCIE ente of the teetery TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 AUG -4 P6:00 SENATE RECEIVED 3Y S. No. _ Introduced by Senator Jinggoy Ejercito Estrada 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".
Sec. 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 reach through cash agents and serve a wider client base, particularly in the low income and rural areas.
Sec. 3. Definition of Terms. - As used in 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 population settlement 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.
Sec. 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; 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 the necessary infrastructure to undertake banking operations.
Sec. 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) days 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 to 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: Provided 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 customer care arrangements.
Sec. 6. Evaluation Process. - The BSP shall create an online 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 indicates and explains the ground/s for rejection; 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.
Sec. 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.
Sec. 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: 1) Deposit and withdrawal transaction performed by the customer on one's bank account; 2) Fund transfers performed by the customer; 3) Bills payment; and 4) 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 Verifications:
1) Conduct customer due diligence (CDD) investigations in opening low transactional and low risk account or accounts subject to deposit and transactional limits; 2) Prevent anti-money laundering and countering financing of terrorism activities; e) Other transactions: 1) Payment (including loan repayments) using credit and debit cards, checks, and cash; 2) Transfer between bank accounts including those to be remitted to other banks; 3) Balance inquiries; and 4) Check encashment.
Sec. 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) Free training and capacity-building seminars conducted by the Department of Trade and Industry (DTI) and its attached agencies; c) Expedited processing of permits and certificates that are requisites to business registration and operation; and d) 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.
Sec. 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.
Sec. 11. Subcontracting Agents. - A Cash Agent cannot subcontract its
operations or business to third parties.
Sec. 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.
Sec. 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.
Sec. 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.
Sec. 15. Transparency and Consumer Protection. - Banks shall ensure that
customers are adequately informed and protected when transacting with their cash agents, and should provide mechanisms for their customers to verify accredited agents and to lodge complaints for agent-related transactions. In all advertising and marketing materials, terms and conditions on the use of agents, and other forms of communications, it must be clearly stated that the banking products and services are products and services of the bank. The bank shall publish on its website or in any available media platforms, an updated list of its accredited cash agents, including their complete registered business name, contact numbers, locations and authorized activities and services. The bank shall also establish mechanism for handling complaints on cash agent related transactions including the committed turn-around time to respond to its clients.
Sec. 16. 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.
Sec. 17. Separability Clause. - If any provision or part hereof is held invalid or
unconstitutional, the remainder of the law or the provision or part not otherwise affected shall remain valid and subsisting.
Sec. 18. Repealing Clause. - Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule, or regulation contrary to or inconsistent with the provisions of this Act are hereby repealed, modified, or amended accordingly.
Sec. 19. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation. Approved,
Reproduced from the Senate document. The official PDF is the authoritative version.