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Volume 1,
Series 1
Amendment to Regulations on Clean Note and Coin Policy

BSP Circular no. 897-2016

In order to get all the unfit bills and coins nationwide, the Bangko Sentral ng Pilipinas released BSP Circular no. 897 entitled “Amendment to Regulations on Clean Note and Coin Policy” last January 6, 2016. This is in relation to the Monetary Board Resolution no. 2112 dated December 2015, which approves the amendments to the pertinent provisions of the Manual of Regulations for Banks, relative to the BSP’s Clean Note and Coin policy.

Under the Section 1 of X950.5 (2008-X610.6) – banks should be accepting unfit Philippine currency notes and coins (these are non-mutilated coins for deposit, regardless of its denomination) from the depositors. In order to do that, banks should adhere to these guidelines to ensure that the Cash Department (CD) or any of the Regional Offices/Branches of the Bangko Sentral will get their unfit bills and coins:

For Provincial branches, they can directly deposit their duly identified and sorted currency notes to a nearest BS Regional Office/Branch. If there’s none, they should make an arrangement with their respective head offices with regards to the shipment. After that, their unfit or dirty notes will be deposited instead at the CD Bangko Sentral, located in Quezon City. As for the shipment cost and other related expenses, they would be shouldered by the banks concerned.

For the submission of the coins, it should be packed and bagged. If not, the CD and Regional Offices/Branches of Bangko Sentral may refuse to accept these cash deposits. This is still in accordance with the procedures which require banks to incorporate and comply with.

Other topics for discourse, under the Proposed Revisions are: structure, mandate of the ARO and BoA, practice of accountancy, accountancy examination mattes, special provisions, and penalties and sanctions.

Under the Section 2 of X950.8 (2008-X610.8) which is Enforcement Actions, mainly concerns bank officials and its staff. In line with the Circular No. 875, dated April 15, 2015, to promote adherence to the requirements set forth in the Sec. X950, the Bangko Sentral may impose sanctions and issue directives to the violations committed in this section. The gravest sanction of violating this section is imprisonment for 5 years, but not more than 10 years.

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