The central bank reminded banks that they are required to accept, exchange or replace the old New Design Series (NDS) banknotes until the last day of 2016 and that it has issued additional guidelines for the exchange of banknotes held by institutions such as government offices, overseas Filipinos, and by courts as part of judicial proceedings.
The old NDS banknotes, which consist of 5-, 10-, 20-, 50-, 100-, 200-, 500- and 1,000-peso denominations, were first issued on June 12, 1985. As of January 1 this year, they can no longer be used for purchases in line with a central bank demonetization program.
They can still be exchanged at authorized financial institutions for the New Generation Currency (NGC) series but will become worthless beginning 2017.
The latest BSP count showed that about P61 billion of the three-decade-old series still have to be exchanged for NGC banknotes.
A total of P815 billion in banknotes were currently in circulation, 7.53 percent of which are NDS bills. In volume terms, 415 million pieces of NDS bills need to be exchanged, equivalent to 14.6 percent of the 2.8 billion pieces in circulation.
The Bangko Sentral ng Pilipinas (BSP) recently issued a circular detailing the procedures to be observed by institutions and overseas Filipinos who may have in their possession NDS banknotes for exchange or replace ment as of the December 31 cut-off date.
From January 2, 2017 to March 31, 2017, all banks and offices of Provincial, City, or Municipal Treasurers may submit the NDS banknotes in their custody for replacement or exchange at the BSP, with two-day prior notice to allow the central bank to prepare the required volume and denominations of NDC banknotes.
In the case of NDS banknotes that are subject of pending court cases, Clerks of Court or law enforcement agencies shall submit to the BSP a duly filled-up and certified inventory/exchange form for the NDS banknotes not later than January 31, 2017.
“The NDS banknote holdings shall be submitted to the BSP for replacement/exchange within six (6) months after the corresponding legal case(s) have been terminated,” it said.
Meanwhile, overseas Filipinos may register their NDS banknote holdings through t he BSP website starting October 1, 2016 to December 31, 2016.
The BSP said the registered NDS banknotes shall be submitted for exchange with NGC banknotes within one year from the date of registration at any BSP office, subject to a P10,000 limit for each overseas Filipinos.
Finally, overseas Filipinos who are located in countries experiencing geopolitical crisis can avail of the BSP exchange facility from January 1, 2017 until December 31, 2017, subject to the P10,000 limit for each.
“The BSP advises the concerned entities to note the actions they need to take and the corresponding dates mentioned in BSP Circular No. 910, Series of 2016, to facilitate the replacement/exchange of their NDS banknote holdings. The said Circular can be downloaded from the BSP website under the Regulations section,” it stated.