BSP: Exchange of 'unfit' banaknotes free of charge
The Bangko Sentral ng Pilipinas (BSP) is preparing for higher cash demand during the Christmas season. It has increased production of banknotes and coins to ensure enough supply for shoppers and gift-givers. At the same time, the central bank is urging the public to consider digital payments for safer and easier transactions.
The BSP has reminded Filipinos that exchanging damaged or unfit banknotes remains free at authorised banks. These include major institutions like BDO Unibank, BPI, Metrobank, Land Bank of the Philippines, DBP, and Security Bank. However, the central bank has warned against individuals or groups charging 'service fees' for currency replacement, as this violates official rules.
To reduce reliance on physical cash, the BSP is promoting e-wallets and online banking for sending gifts. These digital methods offer a faster and more secure alternative to traditional cash transactions. The push comes as holiday spending rises, putting extra pressure on banks and payment systems.
With more banknotes in circulation and free exchange services available, the BSP aims to smooth out holiday transactions. Digital payments are also being encouraged to cut down on queues and reduce risks linked to carrying large amounts of cash. The public is advised to use authorised channels for currency replacement and report any illegal fees.
