G/Treasury and Cash Management: Who should shoulder bank charges/transfer fee for payments using LDDAP-ADA?
ISSUE:
Good evening po… Ask ko lang po sana kung sino ang dapat mag shoulder ng service charge for LDDAP -ADA.
Ganito po kasi un. We render service to another government agency ngayon po magbabayad na po sila. Ang agency po namin ay may income generating project ung IGP fund po is maintained from bank other than LBP. Ngayun po nirerequire po kami ng agency na un to open LBP account para sa purpose na maitransfer nila thru LDDAP-ADA ung payment. Kasi po di na daw po cla pinayagan to issue check payments.. Sa pagkakaalam ko po is pede naman po i LDDAP – ADA kahit na magkaibang bank… Ngayon po mag iincur po cla ng service charge so sino po ang magshoshoulder nun?
RESPONSE:
Starting January 1, 2014, which was later deferred until March 1, 2014, the government adopted the use of the Expanded Modified Disbursement Payment System (exMDPS) whereby direct payment to the creditors’ account is effected by the MDS-GSB not later than 48 hours but not earlier than 24 hours, upon reeipt from the Agency concerned the List of Due and Demandable Accounts Payable and Authority to Debit Account (LDDAP-ADA).
To implement the exMDPS, the creditor has to have an account or has to to open an account with the MDS-GSB of the payor Agency to facilitate the crediting of payment. However, if the creditor has no account in the MDS-GSB of the payor Agency or is not willing to open an account with the Bank, the payment of claims shall be done through bank transfer with corresponding bank service charge.
Who pays the bank service charge?
Per Section 5.9.2 of Circular Letter No. 2013-16, if the creditor’s account is maintained outside the agency’s MDS-GSB, he/she shall borne the corresponding bank charge.
Also, Section 6.5 of the Circular provides that payment thru issuance of Manager’s Check by the MDS-GSB of the Agency concerned is discontinued to minimize cases of late payment.
References:
Circular Letter No. 2013-16B
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