The Bangko Sentral ng Pilipinas (BSP) has required banks to submit their holdings of old notes to the Central Bank before September ends this year, as the so-called new design series (NDS) paves the way for the new generation currency, or NGC.
In a recent memorandum signed by BSP Deputy Governor for Monetary Stability Sector Diwa Guinigundo, the Central Bank said banks must submit their holdings of old notes known as the NDS, to the BSP Cash Department or any regional office or branch not later than the end of September this year.
Earlier, the BSP said there would be no further extension of the demonetization schedule and that the old notes will carry no more monetary value beginning the second half of the year.
Thus, starting on July 1, only the new notes, officially known as the NGC, carry monetary value and the old notes ceased to be a Central Bank liability.
The BSP also asked banks to submit their inventory of NDS on or before the end of July this year.
The Central Bank earlier set a phase out timeline of the old notes with January 1 as the start of the full implementation of the demonetization process by which all old notes can no longer be exchanged for new ones in banks and the BSP.
The Central Bank said the demonetization deadline was moved twice this year due to widespread public clamor.
“The demonetization process of the old banknotes is in line with the provisions of Section 57 of Republic Act 76653, otherwise known as the New Central Bank Act, which authorizes the BSP to replace banknotes that are more than 5 years old,” the BSP said.
The old designs have already been in circulation for almost three decades.