MANILA, Philippines– The Bangko Sentral ng Pilipinas (BSP) has reminded financial institutions in the Philippines that they are required to accept “unfit” or “mutilated” currency.
The BSP defined unfit currency as banknotes that are dirty, soiled, limp, stained, or have faded print and writings.
Mutilated currency includes bills that are defaced or physically damaged by burns, tears, perforations, or similar issues.
This reminder is in response to reports that some banks have been reluctant or have refused to accept such currency, causing inconvenience for people trying to exchange damaged bills.
The BSP is reinforcing that banks must assess and accept unfit and mutilated currency and send them to the BSP for proper disposal.
The BSP emphasized that there are no fees for exchanging damaged currency, making the process free and accessible.
The central bank also encourages people to report any non-compliance by banks to its Consumer Assistance Desk.