The Bangko Sentral ng Pilipinas (BSP) issued recently a Circular that will govern the procedures to be observed by institutions/entities and Overseas Filipinos (OFs) who may have in their possession New Design Series (NDS) banknotes for exchange/replacement as of 31 December 2016. It may be recalled that on 29 December 2014, the BSP announced the timeline for the demonetization process. Under this timeline, NDS banknotes can be exchanged until 31 December 2016 and by 1 January 2017, it shall cease to be a liability of the BSP.
In summary, BSP Circular No. 910 highlights the following guidelines and procedures:
- All banks are required to accept/exchange/replace NDS banknotes until 31 December 2016. Banks’ officers/employees who refuse to accept NDS banknotes from the general public, clients or non-clients, shall be subject to administrative sanctions, pursuant to Section 37 of Republic Act No. 7653, otherwise known as “The New Central Bank Act”;
- All banks and Office of Provincial/City/Municipal Treasurers may submit the NDS banknotes in their custody for replacement/exchange at the BSP from 2 January 2017 to 31 March 2017, with two day prior notice to allow the BSP to prepare the required volume and denominations of NGC banknotes;
- In the case of NDS banknotes which are subject of pending court cases, Clerks of Court/All Law Enforcement Agencies shall submit to the BSP a duly filled-up and certified Inventory/Exchange Form for the NDS Banknotes not later than 31 January 2017. These NDS banknote holdings shall be submitted to the BSP for replacement/exchange within six (6) months after the corresponding legal case(s) have been terminated;
- Overseas Filipinos (OFs) working/living abroad may register their NDS banknote holdings through the BSP Website starting 1 October 2016 to 31 December 2016. The registered NDS banknotes shall be submitted for exchange with NGC banknotes within one (1) year from date of registration at any BSP Office, subject to the Php10,000.00 limit for each OF; and
- OFs who are located in countries experiencing geopolitical crisis can avail of the BSP exchange facility from 1 January 2017 until 31 December 2017, subject to the Php10,000.00 limit for each OF.
The BSP advises the concerned entities to note the actions they need to take and the corresponding dates mentioned in BSP Circular No. 910, Series of 2016, to facilitate the replacement/exchange of their NDS banknote holdings. The said Circular can be downloaded from the BSP website under the Regulations section.