BSP to retailers, banks: Accept folded polymer banknotes

Retailers and banks should accept folded bills—whether they are paper or polymer—as payment for day-to-day transactions, the Bangko Sentral ng Pilipinas said on Monday night.

The BSP issued the statement amid reports that a mall refused a P1,000 polymer bill because it was folded. 

SM has since said that it would accept folded polymer bills as long as they had not been mutilated such as when it is ripped because a staple wire had been removed.

"The Bangko Sentral ng Pilipinas informs the public that folded banknotes, whether paper or polymer, can still be circulated and accepted for payment," the BSP said in a statement.

"As such, retailers and banks should accept them for day-to-day payment transactions," it added.

"The BSP issues this advisory to address concerns raised on social media regarding non-acceptance by some establishments of folded 1000-Piso polymer banknotes," the BSP said.

The BSP said it had released guidelines on the proper handling of polymer banknotes.

This includes storing banknotes in wallets where they fit properly, keeping them clean, and using them as payment for goods and services.

The BSP said that the guidelines applied 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," the BSP said.

"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," it added. —NB, GMA News