(SPOT.ph) You know what they say: more money, more problems. It's a sentiment shared by many Filipinos these days. Most have been avoiding the new P1000 polymer bill recently put into circulation, amidst confusion and controversy surrounding its "please don't fold or crease" guidelines and rising testimonials from those whose folded bills were rejected during their transactions.
Some individuals are now online with claims that you can be fined or imprisoned—or worse, expelled... from the Philippines (a joke, we try)—just for trying to present a folded polymer bill in a transaction. Could there be any truth to this? Let's check out the official Bangko Sentral ng Pilipinas rules and regulations for the answer.
Also read: 10 Long Wallets to Cop for That New P1,000 Bill
Can they refuse or punish you for a folded new 1000 peso bill?
What makes a banknote unfit for currency?
Going onto the Bangko Sentral ng Pilipinas' (BSP) official website and checking out their primer on banknotes, you can see they have a section that specifically details what banknotes are unfit for currency. It reads:
- It contains heavy creases which break the fiber of the paper and indicate that disintegration has begun;
- It is badly soiled/contaminated and/or with writings even if it has proper life or sizing; or
- It presents a limp or rag-like appearance.
The above criteria are the only instances in which a banknote can be refused in a transaction. The simple or light folding of a new P1,000 polymer banknote, therefore, should still be allowed in day-to-day transactions, as folds would typically not be able to break the fiber.
In fact, the BSP put out a recent statement instructing retailers and banks to still accept folded polymer banknotes as they do not meet the above criteria. See the statement below.
Also read: Why the 'Hasty' Peso Bill, Coin Redesigns? Senator Seeks Probe
What is considered a mutilated bank note?
So yes, your money is safe to spend whether it jiggle, jiggles or folds, but how about if it tears? Let's look further down the BSP's primer on banknotes. On "mutilated currency," the BSP lists the criteria as:
- Torn parts of banknotes are joined together with adhesive tape; or
- The original size of the note has been reduced/lost through wear and tear or has otherwise been torn, damaged, defaced, or perforated through action of insects, chemicals, or other causes; or
- It is scorched or burned; or
- It is split edgewise; or
- It has lost all the signatures inscribed thereon; or
- The embedded Security Thread or Windowed Secruity Thread placed on the banknote is partially or completely lost.
Here's an official depiction of what a mutilated banknote could look like, released by the BSP a couple years back:
Can you be punished for a mutilated banknote or banknote unfit for currency?
People normally say you gotta' spend money to make money, but in this case, can you be fined money for spending money? Well, the BSP guidelines say no. You won't be punished for merely attempting to use a mutilated banknote or banknote unfit for currency in a transaction.
However, there is a law against mutilating banknotes. According to Presidential Decree No. 247, "Any person who violates this Decree shall be fined in the amount of not more than P20,000 and/or imprisoned for a period of not more than five years."
Also read: This Guy Burned a P20 Bill on TikTok. Now the BSP Will Teach Him a Lesson
A TL;DR: You should be okay to spend folded banknotes, but the law will punish you should you be caught mutilating them.
What to do with a mutilated banknote?
The BSP advises those in possession of mutilated banknotes to forward them to your local bank, who will then turn them over to the BSP for analysis and "determination of redemption value." Always better to be safe than sorry.
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For more information, check out the official Bangko Sentral ng Pilipinas Facebook page.
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