Philippine Central Bank Orders Rural Banks to Widen Countryside Services

The Bangko Sentral ng Pilipinas (BSP) will make banking services more accessible in the Philippine countryside. It intends to do this by allowing loan collection and disbursement points (LCDPs) of rural banks to start taking deposits and servicing withdrawals of clients.

The LCDPs, which currently serve as collection and disbursement points for loans, will be able to perform additional services to make financial services more accessible and less costly to microfinance clients. Under existing regulations, only banks’ head offices, branches and other extension offices are allowed to take in deposits and service withdrawals of bank clients through tellers, automated teller machines (ATM), and other authorized personnel.

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