The Bangko Sentral ng Pilipinas told banks and other business establishments on Tuesday to accept folded polymer banknotes, saying these can still be circulated and accepted for payment.
The BSP issued the advisory to address concerns raised on social media regarding non-acceptance by some establishments, particularly an SM mall, of folded P1,000 polymer banknotes.
“The Bangko Sentral ng Pilipinas informs the public that folded banknotes, whether paper or polymer, can still be circulated and accepted for payment. As such, retailers and banks should accept them for day-to-day payment transactions,” BSP said.
On Monday, a person said in a widely circulated post that he was trying to use the folded polymer banknote in an SM mall but it was not accepted as payment because it was folded.
“Don’t collect the new P1,000 bills,” he said in Filipino. “You’re not allowed to fold them, according to SM management. I tried to pay with it and they refused to accept it. Am I the only one who does not know this?”
But SM said in an official statement that folded banknotes are still accepted in its SM retail stores.
“In response to the information circulating on social media regarding the new P1000 bill, we would like to assure the public that folded bank notes are still accepted in our SM Retail stores. Only those that are mutilated–stapled and ripped caused by removal of staple wire — will be deemed unfit and not accepted,” SM said.
SM said its policy has considered the guidelines set by the Bangko Sentral ng Pilipinas.
“We encourage the public not to engage with the misleading social media posts,” it said.
Recently, the BSP issued guidelines on the proper handling of polymer banknotes. This includes storing banknotes in wallets where they fit properly (the typical bi-fold wallet fits this criteria), keeping them clean, and using them as payment for goods and services.
But the BSP said the guidelines apply to both paper and polymer banknotes. The handling guidelines were issued to raise public awareness on the proper use of polymer and paper banknotes to safeguard their integrity and prolong their lifespan.
If an individual is doubtful on the value and/or authenticity of a banknote, he or she is encouraged to go to any bank for assistance. The bank will then refer the banknote to the BSP for examination.
BSP also recently launched a webpage to increase public awareness of the new P1,000 polymer banknote.
The BSP encouraged the public to visit bit.ly/PolymerPH, which showcases the polymer banknote’s design, benefits, and security features; guidelines on proper handling; and timeline of release of more notes into circulation.
It also contains images of the new polymer banknote from varying angles to provide the public an opportunity to explore its key features.
Educational materials, such as information sheets and frequently asked questions, are also posted on the new webpage.
Earlier, the BSP said that 10 million pieces, representing 2 percent of the total polymer banknotes to be circulated by next year, were initially made available to the public on April 18, 2022.
BSP said this is equivalent to 0.7 percent of the estimated combined number of P1,000 paper and polymer banknotes in circulation. BSP began the phased issuance of polymer banknotes to banks, with the release of a limited quantity last week.
Before the release, the BSP conducted technical briefings for bank personnel, machine suppliers, and cash-in-transit service providers to educate them on the design and security features of the polymer banknotes.
A total of 500 million pieces of polymer banknotes is expected to be circulated alongside the P1,000 paper banknotes by 2023. Former BSP governor Benjamin Diokno previously said there would be no demonetization of currently circulating banknotes and coins.
The polymer banknotes will soon be available in automated teller machines of banks.
Diokno said banks need to reconfigure their ATMs for this purpose and it could not be done in a short period of time. “Six months is the maximum [period for them to reconfigure their ATMs],” Diokno said.
This new banknote strengthens the BSP’s efforts to respond to pressing public health and safety concerns due to the COVID-19 pandemic, promote environmental sustainability, and deter counterfeiting.
Polymer bills can be sanitized with less risk of damage, making them a more hygienic alternative to paper banknotes. Moreover, scientific studies reviewed by the Department of Health found that in temperatures typical of tropical climates, viruses and bacteria survive for shorter periods on polymer compared to paper banknotes.
According to studies conducted by other countries, polymer banknotes have a smaller carbon footprint as their production requires less water, energy, and other resources. Some countries have reported that polymer banknotes last at least 2.5 times longer than paper banknotes, given their resistance to water, oil, dirt, and general wear and tear.
Their extended lifespan makes polymer banknotes more cost- effective in the long run. They can also be recycled into other useful forms, such as compost bins, building components, furniture and other household products.
Using advanced technology, polymer banknotes make counterfeiting significantly more difficult and costly. More intricate designs and stronger security measures are in line with the BSP’s mandate of safeguarding the integrity of Philippine currency.
The design of the P1,000 polymer banknote features the Philippine Eagle and the Sampaguita on the obverse side; and the Tubbataha Reefs Natural Park, South Sea Pearl, and T’nalak weave design on the reverse side.