Banks Should Still Accept Doubtful or Damaged Paper Bills and Coins, Bangko Sentral ng Pilipinas Says
The Bangko Sentral ng Pilipinas (BSP) has reminded various banks in the country to accept damaged paper bills and coins.
On Wednesday (August 11, 2021), the agency released an advisory citing BSP Circular No. 829 instructing banks to forward damaged or doubtful banknotes or coins to the central bank.
The suspicious paper money and coins would undergo examination of redemption value and authenticity. The announcement has been made to prevent the circulation of counterfeit banknotes.
The move is also a precautionary measure to avoid the disintegration or further deterioration while in transit. The agency also instructed the banks to place the mutilated currencies in appropriate containers.
BSP has also issued guidelines and requirements when accepting mutilated banknotes. Here are some of the following conditions:
- Banknotes should have a remaining surface of at least 3/5 of its original size.
- A portion of any signatures from the President of the Philippines or the BSP Governor are still visible upon turn over
- Presence of the Embedded Security Thread (EST) or Windowed Security Thread (WST)
- Lack of those following features can be considered if the currency has been damaged due to fire, water, chemical, or insects.
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“Banknotes whose EST or WST were willfully removed shall not be valid for redemption,” BSP said.
The central bank called the attention of the banks in the Philippines to cooperate to preserve the Philippine currency’s integrity. The department also reminded the public to do the same for the good of everyone.
BSP’s move will surely give hope to everyone who have their banknotes or coins damaged.
What can you say about this? Just feel free to leave your comments and reactions to this article.
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