Banks allowed to accept old paper bills: new memo

THE BANGKO Sentral ng Pilipinas (BSP) has allowed banks to accept old paper bills until Dec. 29.

 A BSP memorandum on November 10 specified that it is up to the banks if they would voluntary accept the bills. Should a bank accept the old bills, they must surrender these central bank on or before the deadline.

 “This shall be made in accordance with the guidelines on cash deposits,” BSP said in its memorandum.

 “Said new design series (NDS) exchange may be undertaken according to the banks’ internal rules for its operationalization,” BSP said.

 The new deadline was set to replace old banknotes as its reply to the requests of the public. It was supposed to be until June 30 but was extended until the end of the year following the new decision of the bank.

 “The replacement or exchange transactions on the NDS banknotes shall be accommodated without charge at the BSP cash department, regional offices and branches,” BSP said in a statement.

 The central bank will exchange a maximum of P100,000 per transaction. Larger amounts are allowed but payable through check or direct credit to a bank account.

 The old banknotes will be demonetized after the deadline.

 A briefer from the central bank said: “Currencies in the world are demonetized because this is one way of safeguarding the integrity of the currency to protect it from counterfeiters. As a matter of practice, central banks around the world change the design of their currencies that have been in circulation for over 10 years.”

 “In the case of the Philippines, the old banknote series, introduced in 1985 or 30 years ago, is being replaced by the new generation currency series which was launched in 2010,” the briefer added.

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