Damaged notes, coins can be exchanged in banks

MANILA, Philippines - The public may now exchange damaged currency notes and coins at local banks, as lenders are now required to accept them for referral to the Bangko Sentral ng Pilipinas (BSP) plant in Quezon City under a new central bank circular.

“The amendments are in line with the BSP’s initiative to further strengthen its ability to fulfill its mandate as issuer of Philippine currency,” the central bank said in a statement.

“In particular, BSP Circular 829 dated March 13 highlights amendments that aim to preserve and maintain the integrity of Philippine currency notes and coins,” the central bank said.

The new rules on handling currency now requires banks to accept mutilated notes and coins from the public for transportation to the BSP’s Currency Issue and Integrity Office or other regional offices of the central bank for determination of redemption value.

“Banks are allowed to charge their clients reasonable handling fees in rendering this type of service,” the BSP stressed.

However, not all notes shall be replaced by the BSP after two new conditions were set.

The central bank said “notes that are split edgewise resulting in loss of the whole of, or part of, either the face or back portion of the banknote paper” shall not be redeemed.

At the same time, “notes where the embedded or windowed security thread is completely lost, except when the damage appears to be caused by wear and tear, accidental burning, action of water, chemical, bites of rodents/insects, and the like” will not be replaced.

The BSP also said coins showing signs of corrosion will be considered unfit for circulation.

“These amendments on the treatment of unfit and mutilated Philippine peso currency notes and coins were formulated to further facilitate an efficient processing of currency notes and coins deposited by banks to the BSP and submitted by the general public for examination as to their genuineness and/or redemption value,” the central bank said.