GUIDE: What to do if you have mutilated banknotes
Nothing could describe the heartbreak and disappointment of finding your hard-earned savings destroyed, especially if you set it aside for an emergency or a dream item.
Horror stories like this have happened in the past. Recently, a man named Cirilo Bitang had saved up P500 cash for a year, but discovered that his savings, which were kept in a wooden tip box, had been damaged by termites.
"One year ko po siya inipon, 25,000 po lahat 500 peso bill, bali one 500 peso bill lang naisalba," he narrated to GMA Integrated News, adding that the box was placed in a locker. "Chineck ko siya last week ng November wala pa namang anay, after 2 and a half weeks ganiyan na po nangyari. Hindi ko rin napansin na ang dibisiyon ng kwarto ay may anay na rin kaya hindi naagapan," he added.
What to do with mutilated bills
Under the BSP Circular No. 829, series of 2014, the Bangko Sentral ng Pilipinas allows replacements of mutilated banknotes, whether damaged by fire, accidental tearing, stains, or even animal chewing, under its 3S rule:
- size, which requires that at least 60% of the bill has to stay intact
- signature, requiring at least 65% of the BSP governor's or the President’s signature to be visible, and
- security thread, which must be visible on the mutilated bill.
Mutilated banknotes should be taken to an authorized bank near you, which will forward them to the BSP for assessment of their condition.
Damaged coins can be replaced as long as they remain identifiable and can be easily counted.
Meanwhile, coins that have lost their value include those that have been filed, clipped, or perforated. In such cases, coins must be withdrawn from circulation without compensation to the owner.
After the assessment, BSP will deposit the exchanged notes to the bank, which will be returned to the client. This service is free of charge.
