BATT: Bank accounts a personal choice

The initial rush for the new polymer $100 bill may have abated, but the Bankers Association (BATT) is assuring that old $100 notes will be accepted up to close of business on December 31, and there is no need to panic.

In an e-mail to Newsday, BATT president Karen Darbasie said the country’s commercial banks were first made aware of the government’s decision to change the note from a cotton-based paper blend to polymer when National Security Minister Stuart Young announced the plan at last Thursday’s post-Cabinet media briefing. But, she added, “banks prepared and executed this demonetisation change” after the minister’s announcement in time for Tuesday’s dissemination to the public.

“Given the significance of the change, all banks continue to address logistics of currency distribution and customer-convenience issues, regulatory compliance issues and other matters involved in ensuring this change is successfully achieved by the effective date of demonetisation of the cotton $100 notes.”

A major concern for the public is access to new cash from automated teller machines (ATMs), which need to be calibrated to dispense polymer notes.

All banks are working diligently, she said, and some ATMs were already supplying the new notes.

“In the interim, we remind all customers that the existing note remains legal tender for use up to December 31, 2019.”

Banks have also had to make special provisions for elderly customers and people who are unbanked. “Each bank is making available, as best as we can, facilities to deal with the aged and differently abled when they come in to deposit/exchange their old notes,” Darbasie said.

Banks are also telling customers they will all be facilitated, subject to anti-money laundering and counter-financing of terrorism (AML/CFT) and know-your-customer (KYC) guidelines. Most banks will also extend opening hours on weekdays and weekends, and people should check with their banks for the new hours.

Asked if there was any thrust by the association to encourage the unbanked to become banked, Darbasie stressed that the unbanked can deposit up to $10,000 so long as they report their source of funds, regardless of the amount. They are not required to open a bank account.