July 21, 2015

RA 7653: Demonetizing Old Peso Bills

Earlier, I went to the bank and saw a poster on one of their walls that the old Peso Bills or the New Design Series (NDS) can be used by the public for transactions until December 31 of this year only.

Starting January 01, 2016, the New Generation Currency (NGC) will be the only bills that will be accepted in any financial transaction requiring cash.

If you still have NDS bills by 2016, you don’t need to worry because banking institutions including the Banko Central ng Pilipinas or BSP will have it changed for NGC without extra charges. However, exchanging NDS to NGC will run until December 31, 2016 only. Beyond this date, all NDS will no longer have any monetary values and will be considered demonetized.

Source: Banko Sentral ng Pilipinas

Demonetizing the NDS is a part of the provisions of the Republic Act no. 7653, section 57 or known as the “New Central Bank Act”. This act allows the BSP to replace banknotes that are more that 5 years old. Our country’s NDS has been circulating for more than three decades already.

Also, by demonetizing NDS, it will result to a single currency series, which is the NGC, circulating in the country. The NGC started it circulation on December 16, 2010.

To know more about the difference of New Design System and New Generation Currency, you can check it HERE (for the NDS) and HERE (for the NGC).

Do you still have old bank notes in your wallets?