MANILA, Philippines - Small bank depositors living in the countryside will be able to save more money after the Bangko Sentral ng Pilipinas (BSP) raised the deposit limit for micro-banking offices (MBOs).
A single depositor will now be allowed to save up to P40,000 in their micro-accounts, more than double the original P15,000 per depositor account, BSP Deputy Governor Nestor Espenilla Jr. told reporters last Friday.
“People in the countryside are now saving more and more and they want to deal with MBOs because they are accessible to them,†he explained.
“This gives MBOs greater flexibility to service deposit requirements of micro-customers,†he added.
Under Circular 694 issued on Oct. 14, 2010, MBOs are defined as offices that “primarily cater to the banking needs and services of microfinance clients and overseas Filipinos and their beneficiaries.â€
Clients, as defined under the circular, include those involved in the agriculture sector such as farmers and fishers, small entrepreneurs and members of the informal sector such as street vendors.
Among others, they are allowed to open micro-deposit accounts with less than P100 maintaining balance and avail of micro-credit from MBOs for personal and business purposes.
MBOs, on the other hand, may perform customer care services, accept loan payments, receive and pay out remittances as well as host on-site automated teller machines for those which are connected with bigger banks.
Espenilla said the increase in average deposit balance considered the “increasing†capability of rural workers to generate more revenues for them and their families, most of which are kept with the MBOs.
According to latest central bank data, there were a total of 108 banks which applied for 822 MBOs from January to August last year. These offices covered 63 municipalities out of the 1,634 nationwide.