KALIBO, Aklan, October 24 (PIA6) — If you are one of those still holding on to old bank notes (New Design Series or NDS) for sentimental or other reasons or if you received as change from your “suki” fruit vendor dark-colored peso bills after paying your purchases, be sure you dispose of these bills right away, or else be left holding “demonetized”, or value-less money.
After December 31, 2015, the NDS will no longer be accepted for payment transactions, according to the Bangko Sentral ng Pilipinas (BSP).
This call was issued by the BSP last year yet regarding the start of the demonitization process of the old banknotes as part of its objective to preserve the integrity of Philippine currency.
The move is in line with the provisions of Section 57 of Republic Act No. 7653, also known as the New Central Bank Act, which authorizes the BSP to replace banknotes that are more than 5 years old.
In the case of the NDS paper bills, they had been in circulation for almost three decades already.
In order not be caught holding “worthless” or valueless money, take note of theses information and reminders from the BSP:
- People may continue to use the NDS bank notes up to December 31, 2015 in paying and buying goods and services or other business transactions using cash. After December 31, 2015, the NDS bank notes will no longer be accepted for payments.
- From January 1, 2015 to December 31, 2016, the public may exchange with authorized financial institutions like universal and commercial banks, thrift banks, and rural as well as cooperative banks their NDS bank notes with the New Generation Currency (NGC) Series at full face value, without charge. The public may also opt to exchange NDS banknotes with the BSP or any of its regional offices/branches around the Philippines.
- Government institutions holding in trust NDS series which could not be exchanged during the prescribed period, such as banknotes used as evidence in a litigation case, will have to request the BSP Cash Department in writing, within the period of exchange, for a special exchange arrangement.
- For Overseas Filipinos (OFs) abroad who are holding NDS banknotes which could not be exchanged within the prescribed period, they may register online starting October 1, 2016 to December 2016 through the BSP website. These NDS bank notes may be exchanged with the BSP within one (1) year from date of registration; and
- Starting January 1, 2017, NDS bank notes that have not been exchanged shall no longer have any monetary value, and are considered demonetized.
The BSP said that the demonetization of the NDS will result in the circulation of a single currency series in the country – the NGC Series.
The banknotes were issued on December 2010 and use new and enhanced security features to protect the safety of the public against counterfeiters. (JCM/VGV BSP/PIA6 Aklan)