Clean Note Policy and Coin Recirculation Program

Banexo SeNrnaL No PtutptNAs OFFICE OF THE DEPUTY GOVERNOR SUPERVISION AND EXAMINATION SECTOR clRcutAR TETTER NO. Ct-2011-059 To : AllBanks Subject : Clean Note Policy and Coin Recirculation Program Pursuant to the BSP's exclusive power to issue currencyt under Republic Act (R.A.) No. 7553 or The New Central Bank Act and its corollary authority to regulate and manage the circulation of currency, all banks are reminded of their obligation to: (1) Accept unfit Philippine currency notes and coins from the depositing public and observe the expeditious wlthdrawal thereof from circulation; {2) lmplement the Clean Note Policy under Circular No. 61 dated 21January 1995; (3) Arrange direct exchange of their accumulated excess fit currency notes/coins with other banks to optimize circulation of said notes/coins under Memorandum No. 2OO7-O27 dated 19 September 2OO7 (incorporated as Appendix 80 of the Manual of Regulations for Banks); In view of the limited circulation of Philippine coins in the economy, banks are enjoined to perform their duties as authorized agent banks of the BSP, as sole issuer of Philippine currency, by accepting without handling fees or charges, non- mutilated coins for deposit from the public, regardless of amount. Furthermore, banks are directed to re-circulate such coins received from the depositing public in the course of their buiiness to the economy. In order to ensure that banks comply with the Clean Note Policy and Coin Recirculation Program, banks are required to incorporate measures on the implemeritation thereof in their compliance program. Moreover, banks should conduct periodic compliance testing to cover their compliance with the Clean Note Policy and Coin Recirculation Program. plugust 2011 t Section 49 of R.A. 7553 defines "Currenq/ as all Philippine notes and coins issued or circulated in accordance with the provisions of said Act.