When we received money from bank or any other financial institutions we found staples and seals on Banknotes as well as writing of a variety colour pen on notes. Though Bangladesh Bank Department of Currency Management has issued a clean note circulation policy directing all bank officials to refrain from putting seals or staples on currency bundles or writing on banknotes to effect immediately. It becomes a habit for bank officials or officials of financial institutions to write denominations on banknotes, put branch seals on them and staples on each note bundle of any denominations.
According to Bank official’s explanation, they are bound to seal, write and staples on bundles due to customer request because the customer segment feels secure when they receive money as sealed and stapled by the bank. Most of the bank branches still practicing staples and seals on notes, writing to all types of notes.
Read also: How to exchange soil notes or mutilated bank notes from banks in Bangladesh?
But the real scenario is staples and seals on notes, writing on notes reduces the longevity, durability which results in, these notes are not able to reissue in the market. According to Bangladesh bank representatives, Bangladesh Bank is not practicing staples and seals on new and re-issuable notes. Only which are soiled, mutilated for decomposing they used to staples on these notes.
Bank officials view:
Though Bangladesh Bank according to clean note circulation policy instructed all banks not to seal, write or staple on bundles except 1000/- Tk. Note, But the real scenario is banks are not completely maintaining this instruction. Still we found holes, writing on different colour pens & some are practicing writing on a pencil, bank seal on notes.
Clarification was given by some of the bank officials that;
We all know about the circular and we try to comply with that but when you work with customers physically you fill risk free with the staples notes. Because cash counters are always full of customers. When we make payment to the customer a loose bundle if he or she has ill motive they can do any wrongdoing at that time like a fake note detected on that bundle or mutilated note found on that bundle. If you make payment with a stapled bundle there is a 90% chance of not being these types of fraud says Mr. Tajul Islam, Cash in charge of Pubali Bank Limited, Doukhar Bazar Branch, Cumilla.
Officials of Bank Asia, Prime Bank Limited, United Commercial Bank Limited declared that they stop practicing staples and seals on notes, writing on notes according to Bangladesh Bank circular they use flyleaves on bundles and only staples on 1000 Tk. Notes. But sometimes for customer requests they use their Banks flyleaves for binding and use branch seal on it.
Overview of Bangladesh Bank circular:
Bangladesh bank Department of Currency Management first on 08/01/2015, by circular no. 01/2015 gave instruction for the Cash department of all banks to comply with this circular for ensuring proper note management. Then According to the Department of Currency Management of Bangladesh Bank circular no. 06/2019, dated: 09/09/2019, to reduce staples and seals on notes, to minimize writing on notes which results to make note non-issuable, to increase the durability of notes all are instructed to:
01. Not to staples and seals on notes, writing or signing on new and issuable notes at the time of counting and sorting of notes. And at the time of sorting and making bundles of new and issuable notes bank officials must use bank printed fly leaves which ensures bank and branch name, bank official name and sign on it.
02. Bank can staple on 1000 Tk. Note but not on other denominations. According to denomination bank can use 25 mm to 30 mm wide “Polymer Coated Paper Tape” at the time of note binding. Bank can use the latest technology for their own security.
Bangladesh Bank says that staples and seals on notes, writing on notes in different ink can reduce its durability and it looks clumsy. And this practice is only done by bank officials in our country. Other than that, when you try to open the stapled bundle there is a risk to tear some of the notes from that bundle. Moreover, some of them are trying to hide torn notes and taped notes on the staples side of the note bundle.
Considering all these factors Bangladesh Bank Department of Currency Management impose
“Clean note circulation policy” by this dedicated circular.
In this circular, for the case of 1000 Tk. note all banks are instructed to follow Bangladesh Bank Department of Currency Management circular no. 02/2016, dated: 31/01/2016. In this circular stated that; To maintain durability and originality and for the benefit of the customer bank can staple within 1-15 cm of the left side of the bundle.
Bangladesh Bank representatives also stated that, for issuing new notes the government has to expend a huge amount. If we are able to follow these circulars strictly we can minimize this expense.
Consequences of staples and seals on notes, writing on notes:
According to the view of Bangladesh Bank, Bank officials& customer, staples and seals on notes, writing on notes create the following problem;
01. May lose issuablility of notes.
02. Stapler on money for a long time can create rust on notes.
03. Writing on different color ink may tend to hide some security features of the note.
04. Unclear notes are not taken by the customer willingly.
05. There is a risk to tear some of notes at the time of opening the stapled bundle.
06. If the number of non-issue, soil, mutilated notes increases the cost of printing new notes also increases.
So, it is the duty of all officials of banks and financial institutions to comply with the Bangladesh Bank Department of Currency Management circular regarding Clean note circulation policy. For counting help of the bank official, they can use a pencil to write denominations on notes which is easily erasable.
Bangladesh Bank Circular:
Circular 2015
Circular 2016
Circular 2019