MANILA, Philippines – Shifting to a single currency series in the country, the Bangko Sentral ng Pilipinas (BSP) announced Monday, December 29, that the demonetization process on the old banknotes or the New Design Series (NDS) will start Thursday, January 1, 2015.
The replacement process is in line with the provisions of the Section 57 of the Republic Act No. 7653, or the New Central Bank Act that authorizes the BSP to replace banknotes that are in circulation for more than 5 years.
The NDS banknotes have been in circulation for almost 3 decades:
Issued on December 16, 2010, the NGC banknotes are using new and enhanced security features to help thwart counterfeiting.
Following are the key periods and circumstances the public should know during the demonetization process:
- The public may continue to use the NDS banknotes until December 31, 2015. Thereafter, the NDS banknotes will no longer be accepted for payment transactions.
- From January 1, 2015 to December 31, 2016, the public may exchange their old bills or the NDS banknotes at full face value with any authorized financial institutions like universal and commercial banks, thrift banks, and rural as well as cooperative banks. The public may also exchange NDS banknotes with the BSP or any of its regional offices/branches.
- For government institutions holding in trust NDS series which could not be exchanged during the prescribed period, like banknotes used as evidence in a litigation case, they will need to request the BSP Cash Department, in writing, within the period of exchange for a special exchange arrangement.
- For Filipinos abroad who have NDS banknotes which could not be exchanged within the prescribed period, they may register online starting October 1, 2015 to December 31, 2015 through the BSP website. These NDS banknotes may be exchanged with the BSP within a year from date of registration.
- By January 1, 2017, NDS banknotes that have not been exchanged shall no longer have any monetary value, and are considered demonetized, BSP advised. – Rappler.com