THE Department of the Interior and Local Government (DILG) has urged local government units (LGUs) to adopt cashless transactions amid the administration’s push for digital transformation in government.
In a statement Saturday, May 17, 2025, the DILG said it issued a memorandum circular directing LGUs to implement an electronic payment and collection systems (EPCS) as an alternative to traditional cash transactions, such as in collecting taxes and other charges.
LGUs are encouraged to offer secure, accessible digital options, ensure payment channels are user-friendly, and partner with authorized providers, including government servicing banks, which should be aligned with the National Retail Payment System Framework and the Data Privacy Act.
The DILG said cashless transactions improve transparency, efficiency, and public convenience.
“LGUs are also expected to define clear procedures for issuing electronic invoices and billing notices, consistent with guidelines from the Commission on Audit and the Bangko Sentral ng Pilipinas,” the agency said.
“To support full implementation, LGUs are encouraged to pass enabling ordinances and issue local policies. The DILG also committed to providing capacity-building initiatives to help LGUs adopt the system and guide constituents in its use,” it added.
The DILG clarified, however, that LGUs must still accept cash and other traditional modes of payment to ensure accessibility for all. (TPM/SunStar Philippines)