What is 'collection'?

This mechanism, known as a "damaged money transfer operation", effectively allows payments to continue despite the banknotes being damaged.

In the event that banknotes are physically damaged, such as tears, cuts, contamination or other defects, collection may be used to exchange them for intact and usable banknotes. This process provides a controlled exchange between banks, where damaged banknotes are withdrawn from circulation and new banknotes of similar value are issued in their place.

Collection when exchanging damaged banknotes has several advantages. First, it prevents the use of damaged money, which can be rejected at points of sale. Secondly, this process helps to ensure compliance with the standards and requirements for the quality of banknotes in the financial system during cash settlements. In addition, collection when exchanging damaged banknotes helps to ensure trust between banks and ensures the security of financial transactions.