Legal basis and referenced BSP rules
- Currency types are classified into fit, unfit and mutilated pursuant to BSP Circular No. 61, Series of 1995.
- The BSP accepts all types of currency for deposit except mutilated currency, which must be presented/forwarded directly for determination of redemption/exchange value to the BSP Cash Department (CD) or the nearest BSP Regional Cash Unit in accordance with Section 20 of BSP Circular No. 61.
- Fit currency need not be deposited with BSP because it should remain in circulation.
- These guidelines implement the “Clean Note” Policy under Chapter V of BSP Circular No. 61 for retirement of unfit currency notes.
Purpose and operating intent
- The guidelines aim to facilitate the expeditious receipt of banks’ currency deposits and the servicing of banks’ cash withdrawals by BSP.
- The guidelines encourage banks to reduce transport and handling risks by arranging direct exchange among banks for accumulated excess fit currency rather than depositing fit notes with BSP.
Covered transactions and currency treatment
- Banks (including their branches) must observe these procedures when making cash deposits and/or cash withdrawals with the BSP Cash Department or any BSP Regional Cash Unit.
- BSP accepts all types of currency for deposit except mutilated currency, which must be forwarded directly for redemption/exchange value determination as required under Section 20 of BSP Circular No. 61.
- BSP proceeds with withdrawals from (a) unverified fit currency note deposits, (b) unverified deposits of other banks, and/or (c) verified currencies in stock.
- Fit currency notes may be accepted for deposit subject to the required BSP service fee and counting rules stated in the guidelines.
Time limits for acceptance and processing
- Receiving/releasing of banks’ cash deposits/withdrawals ends at 2:00 P.M.
- BSP Demand Deposit checks presented for withdrawal after 12:00 noon are accepted only for processing purposes, with servicing effected the following banking day.
Currency deposits: eligibility, fees, and verification
- Only the bank Head Office in Metro Manila or its designated cash center main/branch in the provinces may make direct deposits with the BSP CD or the nearest BSP Regional Cash Unit.
- Deposits must be classified and sorted into fit and unfit, and further sorted by series and denomination, consistent with the “Currency Guide for Bank Tellers, Money Counters and Cash Custodians” prepared by BSP CD.
- In areas without BSP Regional Cash Units, provincial bank branches must arrange with their Head Offices the shipment of unfit or dirty notes for deposit with BSP CD in Manila; shipment costs and related expenses are for the account of the bank.
- Banks may deposit fit currency notes subject to a one half of 1% service fee based on the total amount of the fit currency deposit.
- BSP accepts fit note deposits only after a package and bundle count has been made, and the deposits are no longer subject to piece verification by BSP before reissuance to banks as cash withdrawals.
- Banks’ fit currency note deposits that are not withdrawn or not reissued to other banks within one (1) month from date of receipt are subject to piece by piece verification by BSP.
- Banks must pre-sort currency notes for fitness so that only pre-counted fit or unfit currency is deposited with BSP, aligned with the Clean Note policy for retirement of unfit notes.
Currency deposit packaging and labeling rules
- Banks must provide securely sealed standard containers separately for:
- clean or fit notes, and
- dirty or unfit notes.
- Each standard container must have a uniform capacity of twenty (20) complete bundles only.
- Each deposit slip must be clearly labeled as “FIT” or “UNFIT” for the corresponding currency type.
- Fit or unfit notes must be arranged in standard containers as follows:
- Notes of a single denomination must be in packages of 100 pieces each, arranged face and top up in packages of 100.
- Each wrapper must be plainly marked with:
- the denomination and amount of currency in the package;
- the date of verification;
- the printed name(s) and signature(s) of the depositing bank’s employee(s) who performed verification; and
- the name of the depositing bank.
- Pins, clips and staple wires must be removed prior to deposit.
- Notes of different denominations must not be mixed in a single package/bundle/container.
- Bundled notes must be packed in sealed containers in uniform quantity of twenty (20) complete bundles per denomination, with each bundle containing:
- 1,000 notes in ten equal packages, each package containing 100 notes.
- Bundling standards per denomination are set as follows (each denomination uses 10 packages per 1 bundle):
- 1000-Piso: standard unit 10 packages; value P1,000,000.00; number of packages 10.
- 500-Piso: standard unit 10 packages; value 500,000.00; number of packages 10.
- 100-Piso: standard unit 10 packages; value 100,000.00; number of packages 10.
- 50-Piso: standard unit 10 packages; value 50,000.00; number of packages 10.
- 20-Piso: standard unit 10 packages; value 20,000.00; number of packages 10.
- 10-Piso: standard unit 10 packages; value 10,000.00; number of packages 10.
Deposit receipt and scheduled verification
- Upon delivery to the BSP CD/Cash Units, the depositing bank’s representative(s) must open the containers.
- In the presence of the depositing bank’s representative(s), BSP’s Accountable Officer conducts package and bundle count.
- If found in order, the BSP Accountable Officer acknowledges receipt of the currency deposits.
- After counting, the bank’s authorized representative returns the bundles to the containers, seals them with the depositor bank’s logo, and padlocks the containers using the key/s controlled by the representative.
- Piece by piece verification of deposits is scheduled by BSP Cash Department/Cash Units at a later date or whenever BSP deems necessary, and the verification must be witnessed by the banks’ authorized representatives.
- BSP refuses acceptance of cash deposits that do not conform with the guidelines and procedures.
Currency withdrawals: authorization, counting, and liabilities
- BSP services cash withdrawals of banks from:
- unverified fit currency note deposits,
- unverified deposits of other banks, and/or
- verified currencies in stock.
- Only authorized representative(s) of the depositor bank may open the sealed container(s) of their unverified fit currency note deposits from which BSP draws to service the cash withdrawal of the same bank or other banks.
- Authorized representative(s) opening the containers must have all keys to the containers’ padlocks whenever assigned to BSP Cash Department/Cash Units for cash withdrawals.
- For cash withdrawn from unverified fit currency note deposits, the authorized representative(s) must conduct bundle/package/piece count and ensure the counts are witnessed by:
- authorized representatives of BSP, and
- representatives of the bank from whose deposit the unverified currencies are withdrawn.
- Shortage/overage found in verification of cash withdrawn from unverified fit currency deposits must be brought to BSP’s attention and must be debited/credited to the respective Demand Deposit Accounts of the depositing banks concerned.
- Shortage/overage found in verification of cash withdrawn from reissued currency that has been verified by BSP CD/CU is for the account of BSP.
- BSP does not honor any shortage/overage found after the authorized bank representatives have left the teller’s counter/cash withdrawal area.
Administrative consequences and control measures
- BSP refuses acceptance of deposits that fail to conform to the required packaging, labeling, sorting, and counting procedures.
- Shortage/overage accountability is allocated based on whether the withdrawn currency is from unverified fit deposits versus BSP-verified reissued currency, with corresponding Demand Deposit Account debits/credits where required.
- BSP controls the timing and process of verification by conducting package/bundle counting for receipt and scheduling piece-by-piece verification later or as needed, under witnessed conditions.