BSP releases guidelines on swap of old banknotes

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has issued the guidelines on the replacement or exchange of old banknotes  held by banks, local government treasurers, law enforcement agencies and overseas Filipino workers.

 BSP issued Circular 910 to facilitate the replacement or exchange of the old banknotes until the end of December this year.

The central ban launched the New Generation Currency (NGC) banknotes in 2010 and replaced the new design series banknotes launched in 1985.

RA 7653 or the new Central Bank Act of 1993 can call in for replacement notes of any series or denomination that are more than five years old and coins that are more than 10 years old.

 Under the newly-issued circular, bank officers or employees who refuse to accept the old banknotes will face administrative sanctions pursuant to the New Central Bank Act.

 According to the BSP, banks and treasurers of local government units may submit the NDS banknotes for replacement with the BSP-Cash Department starting Jan. 2 until March 31 next year and allow a two day prior notice to allow the central bank to prepare the required volume of the new banknotes.

 The BSP pointed out banks and treasurers that submit old banknotes for replacement after the March 31 deadline next year would no longer be entertained.

 On the other hand, clerks of courts and law enforcement agencies are required to submit to the BSP-Cash Department an inventory of old banknotes in their possession on or before Jan. 31 next year.

 The old banknotes involved in pending court cases could be exchanged within six months after the corresponding legal cases have been terminated.

 Overseas Filipinos can register their NDS banknote holdings subject to the limit of P10,000 through the BSP website between Oct. 1 and Dec. 31 this year.

 Filipinos located in countries experiencing geopolitical crisis during the registration period could avail of the exchange facility next year.

 The BSP reiterated that the NDS banknote holdings of overseas Filipinos submitted after the Dec. 31, 2017 deadline would no longer be valid for exchange or replacement.