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Regulation on the Characteristics of Currency and Rules for the Exchange of Banknotes and Coins of the Kyrgyz Republic

The National Bank of the Kyrgyz Republic issued this Regulation to establish clear criteria for currency status and standardized exchange procedures for damaged banknotes and coins. It mandates commercial banks and the National Bank to accept, verify, and exchange worn or damaged notes and coins based on specific area, weight, and authenticity thresholds, ensuring full or proportional nominal value reimbursement. The document further outlines the expert review process, required documentation, liability for unjustified refusals, and procedures for handling doubtful or counterfeit currency.

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National Bank of the Kyrgyz Republic

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Date Created: 2021-12-24

Approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated August 27, 2008 No. 33/5

REGULATION on the Characteristics of Currency and Rules for the Exchange of Banknotes and Coins of the Kyrgyz Republic

(as amended by Resolutions of the Board of the National Bank of the Kyrgyz Republic

  • dated January 31, 2013 No. 2/1,
  • dated September 25, 2013 No. 35/12,
  • dated April 12, 2017 No. 15/5,
  • dated September 25, 2019 No. 2019-P-13/49-9-(NPA),
  • dated December 8, 2021 No. 2021-P-13/68-3-(NPA)).

This Regulation establishes the characteristics of currency and rules for the exchange of damaged banknotes and coins of the Kyrgyz Republic.

(As amended by Resolution No. 15/5 dated April 12, 2017).

Part I. General Provisions

  1. Currency banknotes and coins of the Kyrgyz Republic (hereinafter - banknotes and coins) are those having the status of legal tender on the territory of the Kyrgyz Republic (including withdrawn from circulation), containing no signs of counterfeiting, undamaged or having the following damages:

a. banknotes that are soiled, worn, torn, scuffed, have small holes, punctures, foreign inscriptions, stains, stamp impressions; having lost corners or edges but retaining at least 50 percent of the banknote's area; b. coins having minor mechanical damage, but preserving the image on the obverse/reverse, original shape, and retaining at least 80 percent of their weight.

  1. Currency banknotes/coins must be accepted by all legal and physical persons in settlements and payments without restrictions.

  2. The following are subject to exchange in commercial banks on the territory of the Kyrgyz Republic:

3.1 banknotes, containing no signs of counterfeiting, but having the following damages: a. lost a significant fragment (including burned, exposed to aggressive media, charred and decayed), but retaining at least 80 percent of the original area; b. glued from fragments (regardless of the number of fragments), if one or several fragments, unquestionably belonging to one banknote, occupy at least 80 percent of the original area; c. changed color and fluorescence under ultraviolet rays, if images are clearly visible on them; d. manufacturer defect.

3.2 coins, containing no signs of counterfeiting, but having the following damages: a. changes in original shape (bent, flattened, filed), but preserving the image on the obverse and reverse; b. traces of high temperature and aggressive media exposure (melted, etched, changed color); c. manufacturer defect.

  1. Commercial banks are obliged to exchange banknotes/coins listed in clauses 1 and 3 of this Regulation by issuing a physical or legal person an equivalent (exchanged) amount of sound banknotes and coins, or by crediting it to a bank account opened in a commercial bank, directly after accepting the banknotes/coins, if the authenticity of the banknote/coin is not in doubt. If banknotes/coins raise doubts about authenticity, they are sent for expertise to the National Bank of the Kyrgyz Republic and exchanged upon replacement by the National Bank.

(As amended by Resolution No. 2019-P-13/49-9-(NPA) dated September 25, 2019).

  1. The following are subject to exchange in institutions of the National Bank of the Kyrgyz Republic (hereinafter - National Bank):

5.1 At an amount of 100 percent of the banknote's nominal value, containing no signs of counterfeiting, but having the following damages: a. lost a significant fragment (including burned, exposed to aggressive media, charred and decayed), but retaining at least 51 percent of the original area; b. glued from fragments (regardless of the number), if one or several fragments, unquestionably belonging to one banknote, occupy at least 51 percent of the original area; c. changed color and fluorescence under ultraviolet rays, if images are clearly visible on them; d. manufacturer defect; e. having stamp impressions or special marks used by law enforcement agencies for various special operations, which fluoresce under ultraviolet light.

(As amended by Resolution No. 2/1 dated January 31, 2013).

5.2 At an amount of 50 percent of the nominal value, banknotes containing no signs of counterfeiting, retaining 50 percent of the original area (including burned, exposed to aggressive media, charred and decayed). Banknotes retaining less than 50 percent of the area are not accepted for exchange.

5.3 At an amount of 100 percent of the nominal value, coins containing no signs of counterfeiting, preserving the image on the obverse and reverse with 80 percent weight retained, and having the following damages: a. changes in original shape (bent, flattened, filed), but preserving the image on the obverse and reverse; b. traces of high temperature and aggressive media exposure (melted, etched, changed color); c. manufacturer defect. Damaged coins retaining less than 80 percent of their weight are not accepted for exchange.

  1. The National Bank is obliged to exchange banknotes/coins listed in clauses 1 and 5 of this Regulation by issuing a physical or legal person an equivalent (exchanged) amount of sound banknotes and coins, or by crediting it to a bank account opened for the physical or legal person in one of the commercial banks, directly after accepting the banknotes/coins for expertise, if the authenticity is not in doubt.

(As amended by Resolution No. 2019-P-13/49-9-(NPA) dated September 25, 2019).

Part II. Procedure for Acceptance of Banknotes and Coins for Expertise

  1. Banknotes and coins for exchange and expertise must be presented in a form allowing verification of authenticity and currency, and making a note on the results of expertise on the banknote.

  2. Flaking edges of burnt banknotes, as well as banknotes treated with chemicals, must be secured with tape or glue to avoid loss of part of the note during expertise and exchange.

  3. Washed and waterlogged banknotes, as well as banknotes assembled from scattered fragments, are accepted dry, pasted on thin paper or glued/taped. If a banknote is composed of parts from different banknotes, it is considered as several separate banknotes.

  4. Banknotes arriving from infection sources and posing a risk of infectious disease are not accepted for expertise and must undergo disinfection treatment by specialists of the Kyrgyz Anti-Plague Station. After treatment and corresponding certification, disinfected banknotes may be accepted for expertise.

  5. The bank cashier accepts damaged banknotes/coins for exchange based on the Application (Appendix 1). The applicant is issued a Receipt indicating the amount and quantity of banknotes/coins accepted for expertise (Appendix 2). If a banknote/coin does not require expertise, the cashier exchanges worn banknotes/coins for sound ones directly to the client, without filling out any documents.

  6. Banknotes retaining more than 80 percent of the area are submitted for exchange to commercial banks. Banknotes retaining from 50 to 80 percent of the area are submitted for expertise to the National Bank. Banknotes retaining less than 50 percent of the area are not accepted for exchange.

  7. Currency expertise of a banknote/coin is conducted by the National Bank within a period not exceeding 5 working days. Based on the results, a Protocol is drawn up signed by the person conducting the expertise (Appendix 3). The banknote expertise Protocol is the main document on the basis of which a final decision on exchange or refusal is made.

  8. Upon completion of determining the currency of a banknote/coin, the applicant is presented with the banknotes and coins to review the expertise results. After reviewing the results, the applicant must return the Receipt for acceptance of money for expertise and sign the Application. Banknotes stamped with "EXCHANGED" or "EXCHANGE REFUSED" and damaged coins are not returned to the client.

  9. After expertise, the amount of banknotes/coins subject to exchange is credited to the account of the bank that sent the banknotes. The bank is notified about the crediting (Appendix 4).

  10. Exchange of damaged banknotes/coins specified in clauses 1, 3 and 5 of this Regulation for sound ones, as well as exchange of banknotes/coins of one denomination for others in the National Bank and commercial banks, is carried out without limit on the amount and free of charge for these services. In case of unjustified refusal to exchange damaged banknotes/coins or sound banknotes/coins of one denomination for others in commercial banks, the commercial banks bear liability according to Article 300 of the Code of Administrative Offenses of the Kyrgyz Republic.

(As amended by Resolutions No. 35/12 dated September 25, 2013, No. 2019-P-13/49-9-(NPA) dated September 25, 2019, No. 2021-P-13/68-3-(NPA) dated December 8, 2021).

  1. Banknotes and coins withdrawn from circulation but subject to exchange, containing no signs of counterfeiting, undamaged or having damages specified in clauses 1, 3 and 5 of this Regulation, are accepted and exchanged in the manner provided by clauses 2, 4 and 6 of this Regulation, unless otherwise established by the legislation of the Kyrgyz Republic.

(As amended by Resolution No. 2019-P-13/49-9-(NPA) dated September 25, 2019).

  1. Banknotes and coins that do not have the status of legal tender on the territory of the Kyrgyz Republic, or contain signs of counterfeiting, or have damages not specified in clauses 1, 3 and 5 (including layered banknotes; sample banknotes with the printed word "ҮЛГҮ" [SAMPLE]), as well as banknotes retaining less than 50 percent of the area and coins retaining less than 80 percent of the weight, are non-currency and not subject to exchange.

(As amended by Resolution No. 2019-P-13/49-9-(NPA) dated September 25, 2019).

  1. In case of discovery of doubtful (fake) banknotes/coins during acceptance of cash from physical and legal persons, such a banknote/coin is subject to withdrawal. When withdrawing doubtful banknotes/coins, an Application (Appendix 5) is drawn up, and a Receipt (Appendix 6) is issued to the client. Doubtful banknotes/coins are subject to expertise, and if the expertise result confirms their authenticity, the client is reimbursed for the withdrawn amount, provided that the client returns his copy of the receipt. Further cashier actions in case of discovery of fake banknotes/coins are defined by the Instruction on Working with Doubtful Banknotes and Coins of National Currency, approved by Resolution No. 95/4 dated December 28, 2010.

(As amended by Resolutions No. 2/1 dated January 31, 2013, No. 2019-P-13/49-9-(NPA) dated September 25, 2019).

  1. In case of illegal use and reproduction of images of national currency banknotes/coins or any semi-finished products of their images (in one or several colors), which by their properties (size, color, image) can be accepted in payment circulation as genuine national currency banknotes of the Kyrgyz Republic, physical and legal persons bear liability according to Article 304 of the Code of Administrative Offenses of the Kyrgyz Republic.

(As amended by Resolutions No. 2019-P-13/49-9-(NPA) dated September 25, 2019, No. 2021-P-13/68-3-(NPA) dated December 8, 2021).

Terms used in this Regulation:

  1. Sound banknotes and coins – genuine banknotes and coins that contain minor damages and inscriptions not exceeding the established criteria for assessing banknote wear.

  2. Worn banknotes – genuine banknotes that are unsuitable for cash circulation due to damages exceeding the established criteria for assessing banknote wear.

  3. Doubtful banknotes and coins – banknotes and coins that, due to several technical characteristics, cast doubt on whether they were issued by the National Bank.

  4. Fake banknotes and coins – banknotes and coins that do not meet the technical characteristics of banknotes and coins and are recognized as fake upon expertise.

Appendix 1 to the Regulation on the Characteristics of Currency and Rules for the Exchange of Banknotes and Coins of the Kyrgyz Republic

APPLICATION No. ____ From ___________________________________________________________________________ (name of institution or Full Name of Applicant)

Address______________________________________________________________________

I request acceptance for expertise of damaged banknotes/coins of national currency:

№ Nominal Value Series and Number Year of Issue Received from _________________________________________________________ (circumstances of the client's receipt of banknotes/coins)

"___" ___________ 20 __ g. Signature of applicant __________________

Expertise Conclusion of the National Bank dated "___" _______ 20 __g. № _______

(name of NBKR institution that accepted banknotes/coins for expertise)

Banknotes/coins are subject to exchange at 100% of nominal value Banknotes are subject to exchange at 50% of nominal value Banknotes/coins are not subject to exchange Exchange completed for amount: _______________________ som _______ tyiyn/ I have reviewed the expertise results; the payable amount has been received.

"___" __________ 20 ___ g. Signature of applicant __________________________ (Please fill out all items carefully and legibly!)

Appendix 2 to the Regulation on the Characteristics of Currency and Rules for the Exchange of Banknotes and Coins of the Kyrgyz Republic

(name of institution that accepted banknotes/coins for expertise)

RECEIPT To Application No. ___ dated "_____" __________ 20 __ g.

Accepted for expertise damaged banknotes/coins in the amount of ____________ pcs., for a total sum of _______________________________________________ som _________ tyiyn, (in figures and words)

Serial numbers of banknotes: ____________________________________________________________________________

Additional information: ____________________________________________________________________________

Full Name, Position and Signature of the person who accepted banknotes/coins:

"___" ___________ 20 __ g. (Please return the receipt after reviewing the expertise conclusion!)

Appendix 3 to the Regulation on the Characteristics of Currency and Rules for the Exchange of Banknotes and Coins of the Kyrgyz Republic

(name of National Bank institution that conducted expertise)

PROTOCOL No. _____ dated "___" _____________20 year Determination of Currency Status of Banknotes and Coins of the Kyrgyz Republic Received from ____________________________________________________________________ As a result of the study, it was established: № p.p. Data on banknote / coin Area in % Area in cells Conclusion on exchange Nominal Value Year of Issue Series Number Less than 50 % 50 % More than 50% Less than 97 cells 97-103 More than 103 cells Not subject to exchange Exchange at 50 % Exchange at 100 %

(Full Name of the person conducting expertise) (Signature)

Appendix 4 to the Regulation on the Characteristics of Currency and Rules for the Exchange of Banknotes and Coins of the Kyrgyz Republic

NOTIFICATION The Cash Management Department of the National Bank of the Kyrgyz Republic conducted expertise on your sent damaged banknotes/coins of national currency for a sum of __________ som ____ tyiyn, and exchanged them for an amount of _________ som, ______ tyiyn. The specified sum has been credited to the bank's current account ___________________________

To claim the funds, you should contact _______________________________ ______________________having your passport or identity document.

Head of the Department of Cash Management

Appendix 5 to the Regulation on the Characteristics of Currency and Rules for the Exchange of Banknotes and Coins of the Kyrgyz Republic

(name of organization and address)

(Full Name of the person submitting banknote for expertise)

(passport data and place of residence)

APPLICATION No. ______ I request acceptance for expertise of the following doubtful banknotes/coins:

Nominal Value Year of Issue Serial Number Circumstances of Discovery Note

"___" _________ 20 __ g. Signature _________________________________ (Full Name and signature of applicant)

EXPERTISE CONCLUSION No. _________ dated "___" _________________ 20 __ g:

(name of NBKR institution that conducted expertise)

Expertise conducted by: _______________________________________________________ (Full Name and signature of the person conducting expertise)

Head of the Expert Department of Cash Management (or Department of Money, Regional Office of NBKR): _______________________________________ (Full Name and Signature) Reviewed the expertise conclusion: _________________________________________ (Full Name of client and signature) (Please fill out all items carefully and legibly!)

Appendix 6 to the Regulation on the Characteristics of Currency and Rules for the Exchange of Banknotes and Coins of the Kyrgyz Republic

RECEIPT To Application No. ____ dated "_____________" 20__ year Accepted for expertise doubtful banknotes/coins in the amount of _____ pcs., for a total sum of ________________________________________________ som ____ tyiyn, (in figures and words)

Serial numbers of banknotes: ___________________________________________________

Full Name, Position and Signature of the person who accepted banknotes/coins:______________

(name of institution)

"___" ____________ 20 __g. (Please return the receipt after reviewing the NBKR expertise conclusion!)

Contacts Public Reception: +996 (312) 61-04-86, +996 (312) 66-90-15, ext. +1257, +1256 Consumer Protection Department: +996 (312) 66-90-15, ext. +1671, +1666 Report Corruption: +996 (312) 66-90-15, ext. +2120; +996 (312) 61-04-00 Auto-informer of Official Exchange Rates: +996 (312) 61-07-11 Numismatic Museum: +996 (312) 66-90-15, ext. +1232; +996 (312) 61-24-14 E-mail: mail@nbkr.kg Media Relations: press@nbkr.kg 720010, Kyrgyz Republic, Bishkek, Kiev St., 189

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