Volunteer banks can swap old bills — BSP

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) said the public can exchange or swap old bills demonetized almost five months ago with volunteer banks.

BSP Governor Nestor Espenilla Jr. issued Memorandum 2017 – 036 laying down the guidelines on the voluntary acceptance by banks of the new design series (NDS) banknotes from the general public for replacement or exchange with new generation currency (NGC) bills.

He explained banks could act as agent of its clients in exchanging NDS banknotes with BSP in the performance of other banking services under Section 30 of Republic Act 8791 also known as the General Banking Law of 2000.

Espenilla said the exchange may be undertaken according to the banks’ internal rules for operationalization.

“Should a bank undertake NDS exchange with its clients, such bank shall likewise surrender all NDS banknotes to the BSP on or before Dec. 29,” he added.

Late last month, the BSP’s Monetary Board allowed the exchange of NDS bills until Dec. 29 in response to numerous requests from the general public. Long queues have been a familiar site especially at the BSP complex in Malate, Manila since the extension was announced.

The BSP completed the demonetization of the NDS banknotes last June 30 after several deadline extensions. The NDS bills launched in 1985 lost its monetary value last July 1.

The old design banknotes were no longer accepted in day-to-day transactions last Jan. 1 this year but were exchanged in banks and BSP offices. The original deadline was set on Dec. 31, 2016 but extended to March 31 and eventually to June 30 due to public clamor.

The BSP launched the NGC banknotes in the market in 2010 replacing the NDS bills. The NGC series is user-friendly and allows easy identification of each denomination because of the dominant color that uses distinct and primary inks.

BSP Deputy Governor Diwa Guinigundo earlier said the central bank has no update on the amount of NDS bills that remained unchanged as most of the old banknotes have already been shredded or destroyed.

He explained the life expectancy of the banknotes is very short at one year for the P20 and P50 bills, about two years for the P100 to P200 banknotes, and five years for the P500 and P1,000 bills.

The BSP under Republic Act 7653 or the new Central Bank Act of 1993 could 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.