A new piece of news has surprised the country. The United States Government has announced that mutilated (or torn) bills will no longer be accepted in banks, stores and ATMs. With this, the Bureau of Engraving and Printing (BEP) and the Federal Reserve (FED) are trying to deal with counterfeiting of bills. Stay tuned for everything that has been said so far.
What is a mutilated banknote and why are they being banned?
A mutilated banknote is any banknote that has any tear, stain or major damage that prevents the security features from being verified correctly. The main reasons for damage are:
- Burns from fire, water, chemicals or explosives
- Wear caused by animals
- Damage resulting from burying the banknote.
Why are they being withdrawn? Very simple, because they want to continue protecting the authenticity of their banknotes and protect both the administration and users from possible counterfeit banknotes.
What does this ban have to do with citizens?
Very simple, because these damaged or torn banknotes will not be accepted in shops, ATM deposits or banks. So, make sure you don’t have any of these on you
And what do I do if I have damaged banknotes?
Don’t worry, you will be able to exchange them, or so has been stipulated by the Bureau of Engraving and Printing, the BEP, who are in charge of processing the evaluation of these banknotes and proceeding to exchange them
But be careful, the BEP will only accept the exchange of your banknotes if you meet these two conditions:
- More than 50% of the banknote is identifiable and still contains the security features (i.e., more than half of the banknote remains and the security signs can be seen in its structure)
- Less than 50% of the banknote remains but it shows clear signs that the rest of the banknote has been destroyed: that is, it is not just torn, but, for example, there are signs that the banknote has been burned and the security features that the banknote does not have are because they are destroyed.
Why is this measure being taken?
It is clear that the banks’ aim is to protect the financial system. Although the COVID 19 pandemic has left us with a “tradition” of paying for everything with a card or with our mobile phones, cash is still a fundamental tool for our economy, and every bill that moves through the system must guarantee authenticity and security. Thus, many citizens could have worthless bills in their pockets without even noticing it.
A necessary measure for the economy
The latest data issued by the Federal Reserve estimated that 70 million dollars had been lost with counterfeit bills, a rather high number that causes both consumers and banks to lose. So, this new measure aims to ensure that the bills in circulation are 100% genuine and that no one can “hack” the system.
Summary with all the information:
- Mutilated banknotes are those that are damaged and cannot be identified by the security elements correctly
- You can exchange them at the Bureau of Engraving and Printing (BEP) after an examination to verify their authenticity
- The conditions are that 50% of the banknote must be intact or show clear signs of destruction of the missing parts
- Neither banks, ATMs nor stores will accept torn banknotes
- It is a national security measure
You know, check your pockets, wallets and bags to make sure you don’t have any of these notes, and if by chance you do, run to a BEP office to have it exchanged!