KUALA LUMPUR (Oct 15): Bank Negara Malaysia (BNM) said on Friday the central bank has extended the grace period involving the application for registration of currency processors under Section 70(1) of the Currency Act 2020 to March 31, 2022.

"Pursuant to Section 70(1), read together with Section 63(3) of the Currency Act 2020, BNM hereby extends the grace period for submission of application for registration of currency processors until March 31, 2022," BNM said in a statement.

BNM however did not specify reasons behind its decision to extend the grace period for such applications by financial institutions.

According to the Currency Act 2020 document, a registered currency processor includes any financial institution carrying out currency processing activities.

The document said a currency processing business involves "collecting currency notes or currency coins, sorting currency notes or currency coins by authenticity and quality, and packing currency notes or currency coins by quality, quantity and denomination by a person for or on behalf of another person".

Looking back, BNM's Friday statement on its decision to extend the grace period involving the application for registration of currency processors follows a similar statement by the central bank in March 2021.

On March 23, 2021, BNM said it was extending the grace period for submission of applications for the registration of currency processors until Sept 30, 2021.

"Further information regarding the registration will be announced at a later date," BNM said then.