[Finterest] You can swap your torn bills, rusted coins at any bank for free

MANILA, Philippines – Got a ripped P100 bill that you can’t use? Or maybe some rusty coins that have been sitting in your drawer for years? Here’s your reminder that you can actually exchange your damaged banknotes and coins for fresh ones at any bank, free of charge.

In a public advisory, the central bank has instructed all banks to accept unfit or mutilated Philippine currency.

“The Bangko Sentral ng Pilipinas (BSP) reminds all banks to accept unfit or mutilated Philippine banknotes and coins from the public. Unfit currency should be exchanged — free of charge — for fit or clean banknotes and coins,” the regulator said in an email.

The BSP further clarified to Rappler that you can go to any bank branch to swap out your unfit cash; you don’t need an account with that branch. If you have an account, you also have the option to deposit your unfit bills and coins directly there.

What counts as damaged?

Paper and polymer banknotes are considered unfit if they are dirty, soiled, limp, stained, have faded print or visible writings. Meanwhile, coins are unfit if they “are bent, twisted, defaced, or corroded but their genuineness and denomination can still be determined.”

If your cash is in worse shape, it could be considered mutilated. For banknotes, this would mean that “they are defaced or damaged by burns, tears, perforations, or missing parts due to insects, chemicals, extreme heat (such as fire), or other causes.” Coins are mutilated if you can no longer determine what denomination they are or if they are genuine, whether that’s due to burns, corrosion, filing, clipping, or perforation.

According to BSP Circular 829, series of 2014, mutilated notes and coins may need to be assessed by the BSP first before they can be replaced. Banks are allowed to charge a reasonable handling fee for transporting these to the BSP, which will determine their redemption value.

However, if the BSP determines that the mutilated currency meets any of the following conditions, it will be “withdrawn from circulation and demonetized without compensation to the owner/bearer”— in other words, you won’t be able to exchange it for new bills or coins:

• Identification of notes and coins is impossible
• Coins that show signs of filing, clipping, or perforation
• Notes which have lost more than two fifths of their surface or all of the signatures inscribed thereon
• Notes which are split edgewise resulting in the loss of the whole of or part of, either the face or back portion of the banknote paper
• Notes where the embedded security thread or windowed security thread placed thereon is completely lost except when the damage appears to be caused by wear and tear, accidental burning, action of water or chemical or bites of rodents/insects and the like

But don’t worry, your newest bills might hold up better. The BSP has been rolling out polymer banknotes, which it claims are more durable and resistant to dirt, water, and damage than traditional paper bills. In a Senate hearing, BSP Deputy General Mamerto Tangonan said that with the switch to polymer, the banknotes should have a “longer life span” that would “translate into lower replacement costs,” potentially saving the government up to P2.4 billion.

However, the redesign hasn’t been without controversy. The shift to polymer also came with the removal of iconic national heroes from the P1,000 and P500 bills, a move the BSP has defended as part of a “cyclic” design strategy.

Debates aside, at least for now you can still trade in your old, torn, or rusty money at your nearest bank. – Rappler.com

Finterest is Rappler’s series that demystifies the world of money and gives practical advice on managing your personal finances.

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