The clean note policy aims to enhance the overall quality of the currency in circulation, reinforcing public trust in the nation’s financial system.
In an effort to minimize the presence of obsolete and defective banknotes still in circulation, the Department of Currency Management (DCM) under the Bangladesh Bank has unveiled a new clean note policy. The primary objective of this policy is to ensure that the prevalence of such notes is reduced to a minimum level.
As part of this initiative, the DCM will conduct periodic random surveys to assess the extent of antiquated and defective banknotes circulating within the monetary system. By identifying and withdrawing these unfit notes, the clean note policy aims to enhance the overall quality of the currency in circulation, reinforcing public trust in the nation’s financial system. The introduction of this policy underscores the Bangladesh Bank’s commitment to maintaining a resilient and efficient currency management system.
BB’s new policy: Long-lasting notes, easy exchanges
According to the policy, the central bank will implement measures to print banknotes using high-quality inks, papers, and other materials.
The policy, which comes into effect immediately, includes provisions outlined in the circular issued by the Department of Currency Management (DCM) on May 21, 2019. As part of this initiative, the central bank emphasizes the need to facilitate the exchange of torn or old notes to maintain the overall quality of circulating currency.
Currently, the exchange process is limited to only a few banks, notably the state-owned Sonali Bank, which have dedicated booths for this purpose. However, the central bank urges all financial institutions to comply with its instructions to ensure smooth and easy exchanges of damaged or worn-out banknotes.
The central bank further highlights the significance of having aesthetically pleasing and clean notes in circulation. Such currency, it emphasizes, represents a snapshot of the country’s economic, social, and political situation. With this new policy in place, the central bank aims to create a more durable and visually appealing currency, reflecting the nation’s commitment to maintaining the integrity of its financial system and showcasing its economic strength on the global stage.
Significant reforms ensure confidence in financial system
The Bangladesh Bank recently revealed a comprehensive policy aimed at bolstering acquiescence with the institution’s instructions pertaining to note sorting, packing, banding, flyleaf placement on note packets, and stapling.
As per Section 7A (e) and 23 (1) of the Bangladesh Bank Order, 1972, the Bangladesh Bank has been granted the exclusive authority of issuing currency notes. In fulfilling its vital responsibilities, the Department of Currency Management is dedicated to ensuring the seamless execution of printing, storage, transportation, circulation, verification, cancellation, and destruction of withdrawn notes.
By implementing this policy, the Bangladesh Bank seeks to enhance the overall efficiency and accuracy of note handling processes across the nation. The strict adherence to these instructions is expected to contribute to a more streamlined and accountable currency management system, ensuring the integrity of the national currency and reinforcing public confidence in the financial system.
To achieve these objectives effectively, the DCM has mandated the Security Printing Corporation Bangladesh Limited (SPCBL) to print and supply a fixed number of notes annually. This strategic collaboration aims to maintain a steady circulation of clean and reliable notes in the market, ensuring the stability of the country’s currency supply.
This efficient note management system implemented by the Bangladesh Bank plays a crucial role in sustaining a reliable and functional currency circulation, bolstering the overall stability and trust in the nation’s financial system.
The clean note policy of the Bangladesh Bank was devised to enhance the safety, acceptability, and overall condition of the currency notes in circulation. By swiftly withdrawing worn or damaged notes from the market and replacing them with new ones, the policy ensures a reliable and pristine currency supply for the benefit of the public and the financial system.