MANILA, Philippines — The Department of Social Welfare and Development (DSWD) has shifted the form of issuing grants to millions of family-beneficiaries under the Pantawid Pamilyang Pilipino Program (4Ps) from the previous cash cards to the more efficient, safe and inclusive transaction accounts with the Land Bank of the Philippines.
By using the transaction accounts instead of the cash card, the DSWD said 4Ps beneficiaries could receive funds from other sources and store their money in the account, thus helping them save more money and empower them to become more financially independent.
Irene Dumlao, DSWD social marketing service OIC director, said the new 4Ps transaction account is in the form of a deposit account or e-money/e-wallet.
“In terms of services, they can avail of a wider array of banking services, they can receive assistance from other government agencies through their transaction accounts. They can also receive remittances through it and they can also make deposits and start saving,” Dumlao told The STAR.
Aside from this, the beneficiaries no longer need to line up at automated teller machines or go to the bank to deposit their money, thus reducing travel costs and other expenses.
The 4Ps beneficiaries used to receive their grants through their cash cards. Cash cards have limited features such as cash withdrawal through an ATM or over-the-counter transaction. They also cannot deposit or receive money from other sources.
The transition to transaction accounts aims to empower 4Ps beneficiaries to be more financially independent and upskill them to manage their finances effectively and to access financial services responsibly, Dumlao said.
Also part of the transition was the conduct of financial literacy sessions through the Family Development Sessions. Last year, beneficiaries were provided with foundational topics on financial literacy such as financial planning, budget and saving; and introduction of transaction accounts. This year, additional topics will be provided along with the basics of banking and consumer protection.
The 4Ps is the government’s flagship poverty reduction strategy that provides grants to extremely poor households to improve their health, nutrition and education, particularly children aged up to 14 years.