03 July 2023
Bira and the Independent Retail Consortium (IRC) had the opportunity to meet with representatives from the Bank of England to receive an update on the forthcoming King Charles bank notes.
There were some key insights from the meeting and Bira has highlighted the important actions retailers need to take in preparation for the new King Charles Bank Notes.
The Bank of England confirmed that the King Charles banknotes will be entering circulation by the second quarter of 2024 in a soft launch. The size, material, and security features per denomination will remain unchanged from the current HMQ Elizabeth II banknotes. All four denominations (£5, £10, £20, and £50) will be introduced on the same day, ensuring a smooth transition for retailers and consumers.
The current banknotes featuring HM Queen Elizabeth II will continue to be legal tender alongside the new King Charles banknotes. Only damaged notes will be removed from circulation. The Bank of England assured retailers that both sets of banknotes will co-circulate, offering flexibility to customers during the transition period.
Retailers are advised to update their machines to accommodate the new banknotes. The Bank of England has set a deadline of 31st March 2024 for software updates on machines. Manufacturers are expected to have the necessary machine updates ready by September 2023. It is recommended that retailers start checking with their BEMs (Banknote Equipment Manufacturers) now to ensure a smooth transition and avoid any disruptions.
The Bank of England highlighted the importance of counterfeit detection and vigilance among retailers. While counterfeits of the Bank's polymer design remain relatively low, improved counterfeit designs of the £20 notes have been observed. Retailers are urged to stay vigilant and check each polymer note for security features, such as holograms, to prevent counterfeit acceptance. While no polymer £50 counterfeits have been reported, some withdrawn paper designs are still being accepted.
To support retailers in banknote checking, the Bank of England encourages participation in the banknote checking scheme. This scheme is free of charge and has already seen over 400 retailers and businesses sign up across more than 25,000 locations. It provides training for staff, helps them identify counterfeit notes, keeps them updated with best practices, and offers valuable insights into banknote developments.
To find out more about the scheme, visit this link.
Andrew Goodacre, CEO of Bira said: “It was a really important meeting we had so that we were able to use this information to pass on to our members and other retailers. Bira is dedicated to keeping its members informed and prepared for upcoming changes in the retail industry. The meeting with the Bank of England provided valuable insights into the forthcoming King Charles banknotes and we want to remind retailers to update their machines, remain vigilant against counterfeits, and of course consider joining the banknote checking scheme for enhanced security and awareness.
“By staying proactive and taking necessary precautions, retailers can ensure a seamless transition to the new banknotes and maintain a secure and efficient point-of-sale experience for their customers,” he said.
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