PANGLAO, Bohol – Bangko Sentral ng Pilipinas (BSP) Deputy Governor Zeno Abenoja said the P500,000 cash withdrawal limit likely did not impact the Philippine economy’s third-quarter performance, noting the policy’s implementation came toward the end of the July to September period.
The policy, stemming from a draft circular released on Sept. 18, was implemented “just implemented before the third quarter numbers were released. So, it’s probably not in the Q3 numbers for GDP since the requirements are only very recent,” Abenoja told reporters on the sidelines of the Central Banking Symposium.
His comments follow remarks by Senate Finance Committee Chair Sherwin Gatchalian, who told a plenary that former Finance Secretary Ralph Recto suggested the P500,000 cash withdrawal cap was a “possible” factor behind the country’s slower-than-expected third-quarter economic growth of 4.0 percent.
Addressing concerns raised by cash-dependent sectors about future economic growth, Abenoja assured that the financial supervision sector, headed by BSP Deputy Governor Lyn Javier, is reviewing feedback from Philippine banks.
“I think they are looking at the feedback because everyone is aware which ones are cash-oriented. There are a lot of cash-oriented clients and there was guidance on how to treat such clients so there will be less disruption,” Abenoja said.
Abenoja said banks and supervisors are working with Javier’s office to ensure the guidelines’ implementation allows for smooth and legitimate transactions.
“They do not want this to delay financial transactions. So, that was considered and we got good cooperation with the banks,” he said.
The BSP reiterated in a separate statement that customers can still withdraw funds exceeding P500,000. No additional requirements are needed if the withdrawal is conducted through non-cash channels.
Cash withdrawals above the limit require customers to present documents showing the legitimate purpose of the large-value transaction. The bank said the review of this proof “should be straightforward and not unduly delay customers’ access to their funds as these are already part of the BSP-supervised financial institutions’ existing customer due diligence or know-your-customer process.”
