MANILA, Philippines — The Department of the Interior and Local Government (DILG) is urging all local government units (LGUs) to adopt electronic payment and collection systems (EPCS) as an alternative to traditional cash transactions.

In a memorandum circular, the DILG encouraged the use of EPCS for collecting local taxes, fees, and other charges in line with Executive Order No. 170, series of 2022, which mandates the use of digital payments in government transactions.

The Department said digital payments improve transparency, efficiency, and public convenience. LGUs are advised to offer secure and accessible digital options, ensure user-friendly payment channels, and partner with authorized providers, including government servicing banks. These efforts must comply with the National Retail Payment System Framework and the Data Privacy Act.

LGUs are also expected to set clear procedures for issuing electronic invoices and billing notices, consistent with guidelines from the Commission on Audit and the Bangko Sentral ng Pilipinas.

While pushing for digitalization, the DILG clarified that LGUs must continue accepting cash and other traditional payment modes to ensure accessibility for all.

To support implementation, LGUs are encouraged to pass enabling ordinances and issue local policies. The DILG said it will provide capacity-building initiatives to help LGUs adopt the system and guide constituents in its use.