Clean note policy pushed, BSP tells public to keep new bills in circulation
CEBU, Philippines - The Bangko Sentral ng Pilipinas (BSP) Cebu Regional Office urged the public to comply with the Clean Note Policy so as to preserve the integrity of the Philippine currency.
BSP regional director Atty. Maria Lux Berciles said that cash handlers should only release money fit for circulation instead of the dirty and crumpled ones. She cited the habit of most Filipinos to keep the “crisp†new bills while giving out those that are already unfit to be circulated.
“Ayaw tago-i ang bag-o nga kwarta. Ang dunot ang tago-an aron ideposito ug mailisan sa bangko. Ang bag-o ang ibayad aron ma-circulate sa tanan. (Don’t hoard the crisp bills instead keep the old dirty ones and have it changed at the bank. Use new bills for transactions for proper circulation) Make it a habit,†she stated during the Kapihan sa PIA forum yesterday.
She said that since the Central Bank aims to uplift the economic development of the country, educating the Filipinos on how to properly use money that could add to its value and improve its financial position could contribute to elevating the financial status of the Philippines.
The provisions of the Clean Note Policy are based on the BSP Circular No. 61 Series of 1995 entitled "Consolidated Rules and Regulations on Currency Notes and Coinsâ€. In accordance with the “Currency Guide for Bank Tellers, Money Counters and Cash Custodians†prepared by the Cash Department of the BSP, Philippine bills are classified into two types such as clean or fit notes and dirty or unfit notes.
Unfit for circulation
BSP Bank Officer 1 Hazel Arante clarified that even newly-printed bills but with scribbled writings by the cash handler could be considered as unfit for circulation.
A currency note shall be considered unfit for circulation when it contains heavy creases which break the fiber of the paper and indicate disintegration; when it is badly soiled, contaminated or with writings even if it has proper life or sizing; and when it presents a limp or rag-like appearance.
Also, a Philippine bank note is unfit when it is bent or twisted out of shape or defaced, but its genuineness and/or denomination can still be readily and clearly determined or identified; and when it has been considerably reduced in weight by natural abrasion or wear and tear.
On the other hand, it shall be considered as mutilated when torn parts of banknotes are joined together with adhesive tape in a manner which tries to preserve as nearly as possible the original design and size of the note; when the original size of the note has been reduced or lost through wear and tear or has been otherwise torn, damaged, defaced or perforated through action of insects, chemicals or other causes; when it is scorched or burned to such an extent that although recognizable as such, it has become frail and brittle as to render further handling thereof impossible without disintegration or breaking; when it is split edgewise; or when it has lost all the signatures inscribed on it.
Replacement, Redemption
Berciles further noted that legal tender Philippine currency notes and coins that are considered mutilated or unfit for circulation undergo proper process of replacement and redemption.
Section 56 of Republic Act No. 7653 or the New Central Bank Act states that BSP “shall withdraw from circulation and shall demonetize all notes and coins which for any reason whatsoever are unfit for circulation and shall replace them by adequate notes and coins.â€
She added that unfit currency notes and coins should not be re-circulated but instead be presented for exchange to or deposited with any bank.
For those mutilated ones, they should be forwarded to the nearest BSP regional office for determination of their redemption and exchange value.
“If unfit, you can go to banks. For both mutilated and unfit, go to BSP,†she said, pointing out that banks cannot replace mutilated notes.
Berciles, however, clarified that banks could only exchange unfit notes with crisp ones that are usually distributed every December but not vice versa.
She also said that if a mutilated note is doubted to be redeemed given its appearance, it will be turned over to the Manila office for further investigation.
She shared that those unfit for circulation will be segregated from the fit notes. A department in BSP responsible for retiring Philippine currency notes and coins will then shred those unfit ones.
She cited that in the BSP Cebu regional office alone, they regularly retire double-digit billions of Philippine notes every year.
Cebu, reportedly, is a hub of the biggest money circulation in the country next to Manila. BSP has two regional offices in Central Visayas located in Cebu and Dumaguete.
Proper handling
Berciles then reminded the public of the proper handling of currency notes particularly the common practice of not handling money if hands are wet.
“Maka-mutilate sa money if basa imong mga kamot when handling especially fish vendors. Although we cannot avoid doing such practice especially sa wet markets, we can minimize it. Ayaw na lang ipasa ang unfit notes, ipailis na lang og bag-o para mao na ang ma-circulate,†she said.
She also discouraged bank tellers of writing on and stapling bills since it could also damage the physical appearance of the money.
“If you see someone doing it, you can call the attention of the tellers in a good way so as to let them know that the public is aware of the policy,†Berciles said.
She added that customers can refuse receiving unfit notes in stores since cashiers remit it to their treasury department at the end of the day who then deposit the money to the banks
Mutilating bank notes or coins is actually punishable by law as indicated by Presidential Decree 247 that prohibits defacing, tearing, partially burning or destroying the Philippine currency by any means
Arante said that BSP is aggressively conducing ongoing educational campaign among local government units, academe, and the private sector to increase their awareness on the Clean Note Policy. (FREEMAN)
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