MANILA - Banks should accept mutilated/doubtful banknotes and coins from the public, pursuant to regulations set by the Bangko Sentral ng Pilipinas, the BSP said on Wednesday.
The BSP said authorized agent banks should forward the damaged currencies to the BSP for examination of redemption value and/or genuineness.
Mutilated banknotes shall be valid for redemption, the BSP said, if all of the following requirements are met:
- The remaining surface area is no less than 3/5 of the original size of the banknote;
- A portion of any one of the signatures of the President of the Philippines or the Governor of the BSP remains; and
- Presence of the Embedded Security Thread (EST) or Windowed Security Thread (WST), unless the same is lost or damaged due to fire, water, chemical, or bitten by termites/rodents and the like.
Banknotes whose EST or WST were willfully removed shall not be valid for redemption, the central bank said.
"The BSP encourages the cooperation of the banks and the public in its commitment to preserve the integrity of Philippine currency," it added.
The BSP earlier said that people who willfully damage or deface banknotes and coins will face jail time.