All old banknotes or money bills issued by the Bangko Sentral ng Pilipinas will be demonetized or retired and replaced with a new currency unit starting January 1, 2016 and will no longer be used in transactions involving goods and services thereafter.
However, the old currency such as paper money can still be used as legal tender in commercial transactions until December 31, 2015, along with the new generation currency or the new-minted money bills that will replace the demonetized currency.
Moreover, even if the old currency under the new design series are not accepted in transactions, they can be exchanged for the new design series of banknotes or paper money, at face value and at no cost. (This means, for example, that an old P500-bill can still be exchanged for the new P500-bill until the end of 2016.)
Rural banks, thrift banks, commercial banks and universal banks under the supervision of BSP have been authorized to offer the exchange services as well as BSP offices and branches nationwide.
In a circular, the BSP also indicated that exchanges services are available to all bank customers, even those without accounts in the banks concerned. There is no limit to the amount that can be exchanged, and these services will be available until the last banking day of 2016.
Hence, after 2016 onward as per BSP announcement, the old banknotes or money bills will no longer be accepted in commercial transactions and can no longer be exchanged for the new currency.
Persons working and living abroad, who failed to exchange NDC banknotes for the new currency within the prescribed period, may register online from October 1 to December 31, 2016 through the BSP website. They can exchange their banknotes at the BSP offices within one year from the date of registration.
The BSP is authorized to demonetize Philippine currency as mandated by Republic Act No. 7653 otherwise known as “The New Central Bank Act.” AUDREY L. MENDOZA/GCP