BSP Orders Banks to Accept Mutilated Currency

The Bangko Sentral ng Pilipinas (BSP) has reminded all banks to accept unfit or mutilated Philippine banknotes and coins from the public in accordance with banking regulations.

Under BSP Circular No. 829, series of 2014, and the Manual of Regulations for Banks (MORB), financial institutions are required to process and submit mutilated currency to the BSP for examination.

Banks must exchange unfit currency free of charge for clean or fit banknotes and coins. Mutilated currency should be placed in proper containers to prevent further deterioration during transit.

The BSP classifies unfit banknotes as those that are dirty, soiled, limp, stained, faded, or have visible markings. Notes are considered mutilated if they have been defaced, burned, torn, perforated, or have missing parts due to insects, chemicals, extreme heat, or other causes.

Coins are unfit if they are bent, twisted, defaced, or corroded but still recognizable. They are deemed mutilated if their genuineness or denomination can no longer be determined due to burns, corrosion, clipping, or perforation.

The BSP encourages the public to properly use and recirculate clean Philippine banknotes and coins, emphasizing that maintaining currency integrity reflects the country’s economic stability and public trust.