The Monetary Board approved the amendments to Consolidated Rules and Regulations on Currency Notes and Coins prescribed under Bangko Sentral ng Pilipinas (BSP) Circular No. 61 dated 21 January 1995.
The amendments are in line with the BSP’s initiative to further strengthen its ability to fulfill its mandate as issuer of Philippine currency. In particular, BSP Circular No. 829 dated 13 March 2014 highlights amendments that aim to preserve and maintain the integrity of Philippine currency notes and coins.
In summary, major amendments to BSP Circular No. 61 include the following new provisions:
- Banks shall incorporate measures on the implementation of the BSP’s Clean Note and Coin Policy in their compliance program;
- Coins submitted by banks to BSP for deposit or determination of redemption value shall be packed/bagged in accordance with specific procedures prescribed in the recently issued BSP Circular;
- Banks are required to accept mutilated notes and coins from the public for referral or transmittal to the Currency Issue and Integrity Office (CIIO), BSP, Security Plant Complex, Quezon City, or any of the BSP regional offices/branches, for determination of redemption value. Banks are allowed to charge their clients reasonable handling fees in rendering this type of service ; and
- Two new conditions were adopted under which the BSP shall not replace or redeem notes considered mutilated, namely: (1) notes that are split edgewise resulting in loss of the whole of, or part of, either the face or back portion of the banknote paper; or (2) notes where the Embedded or Windowed Security Thread is completely lost, except when the damage appears to be caused by wear and tear, accidental burning, action of water, chemical, bites of rodents/insects, and the like.
This recently issued Circular also clarified further that in addition to the criteria cited in BSP Circular 61 Series 1995, coins which show signs of corrosion are also considered unfit for circulation. These amendments on the treatment of unfit and mutilated Philippine peso currency notes and coins were formulated to further facilitate an efficient processing of currency notes and coins deposited by banks to the BSP and submitted by the general public for examination as to their genuineness and/or redemption value.
BSP Circular No.829