THE Bangko Sentral ng Pilipinas (BSP) is urging local banks to accept mutilated or doubtful currencies.
In a statement on Wednesday, the Central Bank reminded all authorized agent banks (AABs) that the practice of accepting mutilated currencies is implemented under BSP Circular 829.
“Banks shall subsequently forward the mutilated or doubtful banknotes and coins to the BSP for examination of redemption value and/or genuineness,” the BSP said.
“To avoid disintegration or further deterioration while in transit, banks are advised to place mutilated currency in appropriate containers,” it added. The BSP said only mutilated banknotes that follow certain requirements shall be valid for redemption.
The requirements are: (1) The remaining surface area is no less than 3/5 of the original size of the banknote; (2) A portion of any one of the signatures of the President of the Philippines or the Governor of the BSP remains; and (3) Presence of the Embedded Security Thread (EST) or Windowed Security Thread (WST), unless the same is lost or damaged due to fire, water, chemical, or bitten by termites/rodents and the like.
Banknotes whose EST or WST were willfully removed shall not be valid for redemption.
“The BSP encourages the cooperation of the banks and the public in its commitment to preserve the integrity of Philippine currency,” the BSP said.