Editor's Note (July 21, 2026 at 11:13 am): This article originally reflected RCBC's July 4 rollout of free InstaPay transfers, which included a transaction cap for RCBC Pulz. It has been updated to reflect the bank's July 15 announcement expanding the benefit to eligible InstaPay and PESONet transfers on RCBC Pulz and RCBC DiskarTech with no transfer limits or transaction caps, subject to the bank's terms and conditions.
The Bangko Sentral ng Pilipinas (BSP) is currently evaluating compliance reports and cost breakdowns submitted by financial institutions and e-wallet operators that have yet to fully waive or significantly slash interbank transfer charges. According to BSP Deputy Governor Mamerto Tangonan, the central bank is verifying whether their current fee structures align with the provisions of BSP Circular No. 1238.
The regulatory check comes as major payment service providers, most notably e-wallet giants GCash and Maya, reduced their interbank InstaPay fees to ₱10 rather than eliminating them entirely.
The Core Regulatory Mechanism
Under BSP Circular No. 1238, charges for sending money between different institutions (“off-us” transfers) must not be materially different from transfers within the same institution (“on-us” transfers), except to cover direct, minimal network switch costs, estimated at around ₱1.50 per transaction. Because intra-wallet or same-bank transfers are generally free, the BSP instructed non-compliant providers to submit an itemized cost analysis justifying any remaining markup.
Tangonan noted that non-compliant institutions face a strategic choice: lower their interbank transfer fees further to match actual switch costs, or introduce charges for same-network transfers so the gap between the two rates is no longer significant.
“We asked them to give us an explanation or an itemized breakdown on how their fees were constructed so that we will see if it complies with Circular 1238 or if it needs improvement,” Tangonan said, emphasizing that financial institutions should rely on adjacent services like lending, investments, and insurance for revenue rather than transaction friction.
Contrast with Broader Banking Sector Fee Waivers
The central bank’s review highlights a growing divergence between legacy commercial lenders and standalone e-wallet platforms. While e-wallets cite reliance on transaction-fee revenue to sustain offline agent cash-in networks, major traditional and state-run banks covering over 90% of total digital transaction volume have moved to completely eliminate transfer fees:
- Bank of the Philippine Islands (BPI): Permanently waived all InstaPay and PESONet fees across its main digital platforms starting July 1.
- Rizal Commercial Banking Corp. (RCBC): Initially waived InstaPay fees on RCBC Pulz for up to 30 transactions per month starting July 4. On July 15, the bank expanded the benefit to include eligible InstaPay and PESONet transfers on both RCBC Pulz and RCBC DiskarTech with no transfer limits or transaction caps, subject to its terms and conditions.
- Land Bank of the Philippines (LANDBANK) & UnionBank: Fully waived retail InstaPay and PESONet transfer fees on July 7.
- Metrobank, PSBank, Chinabank, & BDO Unibank: Implemented complete fee waivers across their respective online and mobile applications on July 9.
- Philippine National Bank (PNB) & Security Bank: Transitioned to zero-fee structures for digital transfers starting July 10.
- EastWest Bank: Scheduled its total elimination of InstaPay and PESONet fees to take effect on July 15.
BSP earlier warned that it would sanction banks that would not lower their transfer fees.
Read More: List: PH Banks With Free InstaPay and PESONet Transfers After BSP Fee Rules
The central bank reaffirmed that enforcement measures or penalties for non-compliance remain an option following the ongoing review, as the regulator pushes toward a low-cost, interoperable digital ecosystem for consumers and small merchants alike.
This article is published on BitPinas: Most Banks Dropped Transfer Fees. BSP Is Now Reviewing Those That Didn’t
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