BSP: Banks to accept, replace old bank notes

CEBU, Philippines - The Bangko Sentral ng Pilipinas belied reports that banks will no longer accept unfit or mutilated notes and in fact is calling on the public to deposit the old ones so that the bank can change it with new currency notes.

BSP Cebu regional director Maria Lux  T. Berciles said banks are obliged and mandated to accept old money whether it is unfit or mutilated.

Berciles sends out a warning to erring banks who will be caught violating BSP Circular No.829 of 2014

"It is our mandate as well as the banks which are agents of the BSP to exchange unfit notes," the bank official added.

The Cebu Bankers' Club already advised its member banks to follow the BSP's mandate to always accept ruined money as the central bank will after all change it with new ones, said Joey Umerez, the club's outgoing president.

For his part, CBC's incoming president, Gimo Gonzales also urged the public to take their unfit and mutilated money to any bank or directly to the central bank and have it changed with new ones, doing so will take out the mutilated money from circulation.

Berciles further explained on how people can tell whether money is unfit or mutilated.

A currency note can be considered as mutilated when: torn parts are taped trying to preserve the original design; the original size of the note has been cut or lost through wear and tear or damaged by insects or chemicals; it is being split sideways; and the note has lost all the signatures written on it.

"Maka-ingon ta nga mutilated kung ang iyang physical appearance lahi na gyod sa original," the director noted.

On the other hand, unfit notes can be recognized through: the existence of heavy creases which breaks the paper's fiber; soiled paper and the writings even if they have still good texture or size; and limp appearance that can no longer sustain upright position.

Mutilated notes are not automatically accepted for replace but will have to be examined first for exchange value, Berciles explained.

The Currency Investigation and Integrity Office of BSP is tasked to examine mutilated notes whether these can still be redeemed or not.

People who want a replacement for their mutilated notes are first given a receipt and will have to wait for the test results.

She also said banks should circulate new currency notes, saying that a bank returning unused money to the BSP will have to pay a penalty of P2,000 each box (containing 20 bundles).

"Dunay penalty kay they are supposed to give it (money) to the public for circulation," she noted.

Meanwhile, Umerez advised drivers, small vendors and all business establishments not to hesitate to receive ruined money because the BSP will surely accept or replace it.

He assured they have received the commitment of the banking industry to follow the rules.

The BSP further advised the public to report to their office if in any case a bank refuses to accept or replace old notes. (FREEMAN)