MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has issued a reminder to all banks nationwide to accept unfit or mutilated Philippine banknotes and coins from the public, saying that it is their responsibility to facilitate their exchange and proper disposal.

In a statement, the central bank said that unfit currency—whether paper, polymer, or coin—should be exchanged free of charge for fit or clean banknotes and coins. 

This directive is in line with BSP Circular No. 829, series of 2014, and the Manual of Regulations for Banks (MORB), which require banks to process and submit mutilated currency to the BSP for examination.

To ensure proper handling, the BSP advised banks to place mutilated currency in appropriate containers to prevent further deterioration during transit.

What constitutes unfit or mutilated currency?

According to the BSP, paper and polymer banknotes are considered unfit if they are dirty, soiled, limp, stained, or have faded print and visible writings. 

Meanwhile, banknotes are classified as mutilated if they are defaced or damaged due to burns, tears, perforations, or missing parts caused by insects, chemicals, fire, or other factors.

Coins, on the other hand, are deemed unfit if they are bent, twisted, defaced, or corroded but remain identifiable in terms of genuineness and denomination. 

However, they are categorized as mutilated if their authenticity or value can no longer be determined due to extreme damage such as burns, corrosion, filing, clipping, or perforation.

The BSP encourages the public to properly use and recirculate fit or clean banknotes and coins, adding that maintaining the quality of the country’s currency is essential in upholding economic stability and trust in the financial system.