The Bangko Sentral ng Pilipinas (BSP) has instructed banks to accept unfit or damaged Philippine banknotes and coins from the public, reminding them of their responsibility to process and submit these to the central bank for examination.
Under BSP Circular No. 829, series of 2014, and the Manual of Regulations for Banks (MORB), banks must ensure that mutilated currency is properly handled and placed in secure containers before being sent to the BSP to prevent further damage.
“Banks must accept unfit or mutilated Philippine currency from the public and submit them to the BSP for examination,” said the BSP. “This process ensures that the country’s currency remains reliable and usable.”
The BSP defines unfit paper and polymer banknotes as those that are dirty, soiled, limp, stained, or have faded prints or visible writings. Mutilated banknotes have missing parts or are damaged due to burns, tears, or exposure to chemicals. Coins are considered unfit if they are bent, twisted, defaced, or corroded but still identifiable. If a coin’s authenticity or value is unclear due to burns, corrosion, or clipping, it is classified as mutilated.
The BSP urges the public to exchange unfit banknotes and coins at banks, where they can be replaced with clean currency free of charge. It also encourages proper handling and circulation of money to help maintain the integrity of the national currency.