Specific rules for the use of intelligent euro banknote neutralization systems (IBNS)

Bank of Portugal
Circular Letter No. 1/2011/DET, of 18-01-2011
SUBJECT: Specific rules for the use of intelligent euro banknote neutralization systems (IBNS) Through Instruction No. 1/2011, the Bank of Portugal established the conditions under which banknotes altered as a result of the use of intelligent euro banknote neutralization systems (IBNS) can be deposited or exchanged, as they are not deprived of legal tender, as well as the general rules for the use of IBNS by credit institutions and other entities that professionally operate with cash. In accordance with point 2.3. of the aforementioned Instruction, the specific rules for each type of IBNS are subject to publication through a Circular Letter. As equipment using different technologies to neutralize banknotes is known, namely, inking, burning, and inking and burning, which are understood to be efficient if they unequivocally and irreversibly ensure the neutralization of banknotes, even when subjected to intensive tests to verify their resistance to chemical or other agents, the following is determined:

1. As a result of the action of an IBNS using technology of:
   a. Inking - No banknote must show a damaged surface of less than 30%. b. Burning - No banknote must show a remaining surface greater than 50%.
   c. Inking and burning - No banknote must show a remaining surface greater than 40% and an inked area greater than 10%.
2. For the purpose of filling out the form/receipt for acceptance/exchange of banknotes damaged by IBNS (Annex 2 of Instruction No. 1/2011), the mention “INKING”, “BURNING” or “BURNING/INKING” must be affixed in the field related to the Type of IBNS.
   __________________________________________________________________________________ Sent to:
   Banks, Central Mutual Agricultural Credit Bank, Montepio Geral Savings Bank, Caixa Geral de Depósitos, Mutual Agricultural Credit Banks, Savings Banks, and Exchange Agencies.