BSP amends rules on clean note and coin policy

CEBU, Philippines – The Bangko Sentral ng Pilipinas has amended rules on its Clean Note and Coin Policy.

In Circular 897 it recently issued, the BSP noted: “As part of banks’ duties as authorized agents of the Bangko Sentral, banks are enjoined to accept unfit Philippine currency notes and coins from the depositing public.”

The central bank added banks are also mandated to accept, without charges, non-mutilated coins for deposit, regardless of denomination, from the public.

“Further, banks shall re-circulate such coins received from the depositing public,” the BSP said in the issuance.

The Bangko Sentral urged banks to help it expedite the withdrawal of unfit currency notes from circulation.

A bill is considered unfit when it contains heavy creases which break the paper’s fiber and indicate that disintegration has begun.

Based on rules, banks must still accept unfit notes for deposit of exchange and these should be turned over to BSP Cash Department.

“Currency notes and coins considered unfit for circulation shall not be re-circulated, but may be presented for exchange to or deposited with any bank,” the BSP said.

Cost of shipment and other related expenses in turning over unfit bills are to be shouldered by banks.

It said banks must have periodic testing to monitor the implementation of bank branches and units in accepting unfit notes. (FREEMAN)