The Central Bank of the Philippines reminded banks to accept from the public unfit and mutilated paper banknotes, polymer banknotes, and coins. It also reiterated that exchanging unfit currency for fit or clean notes and coins must be done free of charge. Under BSP Circular No. 829 (series of 2014) and the Manual of Regulations for Banks, banks must accept mutilated currency and submit it to the BSP for assessment, and are advised to place mutilated cash in appropriate containers to prevent further deterioration. The BSP set out examples of unfit banknotes (dirty, limp, stained, faded print, or with writing/marks) and mutilated banknotes (damaged by fire, tearing, holes, missing parts, or harm caused by insects, chemicals, extreme heat, or other causes). Coins are considered unfit if bent, twisted, dirty, or rusty but the coin’s genuineness and denomination remain identifiable, while coins are considered mutilated if burning, rust, abrasion, clipping, holes, or similar damage prevents clear identification of genuineness or denomination. The BSP also encouraged the public to use currency properly and return fit notes and coins to circulation as part of its efforts to preserve the integrity of the currency.
Central Bank of the Philippines 2025-02-21
Central Bank of the Philippines reiterates banks’ obligation to accept unfit and mutilated notes and coins and provide free exchange for unfit currency
The Central Bank of the Philippines reminded banks to accept unfit and mutilated currency, including paper and polymer banknotes and coins, from the public at no charge. Under BSP Circular No. 829 and the Manual of Regulations for Banks, banks must submit mutilated currency to the BSP for assessment. The BSP also urged the public to use currency properly and return fit notes and coins to circulation.