Banknotes featuring the portrait of the UK's King Charles III were introduced into circulation yesterday (5 June).

These notes feature the King’s image on the existing designs of all note denominations, including £5 ($6.39), £10, £20, and £50, without any other modifications.

The notes can be verified in the same manner as the current polymer notes depicting Queen Elizabeth II.

Coexistence with Queen Elizabeth II notes

Banknotes bearing Queen Elizabeth II's portrait will remain legal tender and will continue to circulate alongside the new King Charles III notes.

The new notes will only be printed to replace worn ones and to meet any increased demand. This approach aligns with the Royal Household’s guidance to reduce environmental and financial impacts.

Andrew Martin, CEO and founder of SMEB, commented on the addition, noting: "With cash use on the rise for the first time in a decade, people could be getting their hands on the new King Charles III banknotes sooner than they think."

No immediate need to exchange notes

There is no requirement to exchange existing banknotes for those featuring King Charles III.

For those interested in obtaining the new notes, temporary facilities have been established to allow limited exchanges.

Up to £300 worth of new notes per customer can be exchanged through the country's postal service from 5 June to 30 June 2024, with the exchanged notes only sent to UK-based addresses.

Meanwhile, the Bank of England’s (BoE) counter at Threadneedle Street will issue King Charles III notes from 5 June to 11 June 2024, with the same £300 limit per customer.

Exchanges over this amount will receive Queen Elizabeth II notes.

Due to anticipated high demand, long wait times are expected during this period. Henceforth, from 12 June 2024, the BoE counter will revert to issuing Queen Elizabeth II notes only.

Implications for businesses

Businesses need to prepare for the new banknotes by ensuring their machines can accept, sort, and verify them.

Martin advised businesses to be vigilant to protect against fraud, recommending they familiarise themselves with the new notes’ designs and counterfeit features via the BoE’s website.

He also suggested checking with ATM providers to ensure machines are updated and always verifying high-value notes for counterfeits.

Obtaining new banknotes

Individuals can use a postal exchange service to obtain King Charles III banknotes by sending in current or old-series notes with a completed application form.

The service is capped at £300 per customer, with any excess cash returned via the specified return postal method.

Security measures will be in place at the BoE’s counter, and only individuals conducting exchanges will be permitted entry.