CB extends deadline for exchange of mutilated currency notes

The Central Bank said yesterday that after members of the public revealed their difficulties in exchanging wilfully defaced currency notes at Licensed Commercial Banks (LCBs) and requested more time to do so, it had decided to extend the time period for the exchange of currency notes at LCBs up to 31 March 2018.

Mutilation, alteration or defacement of currency notes is an offence under the Monetary Law Act (MLA) No. 58 of 1949, and is punishable by imprisonment, a fine or both. Under the Regulation E of MLA, no claim in respect of wilfully mutilated or altered notes shall be entertained and such notes shall be retained by the Central Bank.

The holder of these currency notes will have to suffer the loss of face value of such notes effective from 1 April 2018.

Accordingly, the Central Bank advises the public to refrain from such practices and requests it to assist in preserving the value and integrity of the country’s legal tender by refraining from wilfully damaging currency notes.