Regulatory Alerts2008-07-18
Banking Circular No 4 of 2008 Revised - Amendment- Revised guidelines for currency transactions
Banknotes and coins that are deemed unfit for circulation due to defects or damage should be sorted according to the given categories. Banknotes with tears, missing corners, security thread loose/missing, or other mutations will be considered "UNFIT" and rejected for circulation. Similarly, coins with major scratches, cracks, discoloration, corrosion, tarnish, or counterfeit features will also be categorized as "UNFIT." The sorted banknotes should be packaged into sub-bundles containing 100 banknotes and then bundled into sets of 10 sub-bundles. Each bundle should have a label stating its type (FIT/UNFIT) and the specific denomination, with different colors representing each denomination for standardization purposes. Coin packaging involves placing them into bags with corresponding labels indicating whether they are fit or unfit and their respective denominations. Different colors are assigned to each denomination of coins for easier identification. This process ensures that only serviceable banknotes and coins are circulated within the economy, promoting proper functioning of the financial system.