Note: This text is a working material for information only, and is not an official translation of the Czech legislation

Revisions: Act No. 60/1993 Coll.

Act No. 15/1998 Coll.

Act No. 442/2000 Coll.

Constitutional Court Ruling of 20 June 2001, promulgated under No. 278/2001 Coll.

Act No. 482/2001 Coll.

Act No. 127/2002 Coll.

The Czech National Bank shall have the exclusive right to issue banknotes and coins, including commemorative coins (hereinafter referred to as "banknotes and coins").

The monetary unit in the Czech Republic shall be the Czech koruna (crown), abbreviated as "Kč". The Czech koruna shall be divided into one hundred hellers.

The Czech National Bank shall manage the stocks of banknotes and coins, and shall organise the delivery of banknotes and coins from the manufacturers in keeping with the requirements for the circulation of money.

The Czech National Bank shall organise the printing of banknotes and the minting of coins, and shall see to the protection and security of banknotes and coins that have not been released into circulation and to the safekeeping and destruction of printing plates, dies and invalid and withdrawn banknotes and coins.

(1) Valid banknotes and coins issued by the Czech National Bank shall be legal tender at their par value in respect of all payments made within the territory of the Czech Republic.

(2) Coins made from precious metals, commemorative coins and special coins intended for collection may be sold at prices other than their par value.

(1) Upon request, the Czech National Bank shall exchange any damaged banknotes and coins it has issued for undamaged banknotes and coins.

(2) The Czech National Bank may refuse to exchange banknotes or coins the design or relief of which is illegible or perforated, and the remains of banknotes smaller than one quarter of the original area of the banknote. Such banknotes and coins shall be taken from the presenter without compensation and shall be destroyed. In justified cases, the Czech National Bank may exceptionally provide compensation.

(3) The Czech National Bank shall not provide any compensation for banknotes or coins that have been destroyed or lost. It may withdraw without compensation banknotes the appearance of which has been altered, particularly those that have been written on, drawn on, overprinted, printed on or perforated, or which have been soiled by paint, glue or other such material.

The Czech National Bank shall withdraw from circulation banknotes and coins suffering from wear and tear, destroy them and replace them with new banknotes and coins.

(1) The Czech National Bank may declare invalid and withdraw from circulation any banknotes and coins it has issued. It shall refund their par value by exchanging them for other, newly issued banknotes and coins. The period over which such exchange may take place shall not be less than five years, save as otherwise provided in a special legislative act.

(2) At the end of the exchange period, the sum total of the banknotes and coins that have been declared invalid but have not been presented for exchange shall be deducted from the amount of money in circulation that appears in the accounts of the Czech National Bank. This sum shall be income to the Czech National Bank.

Any kind of reproduction of banknotes, coins, cheques, securities or payment cards denominated in Czech korunas or in a foreign currency (hereinafter referred to as "money symbols"), or objects imitating them, may only be made under the terms and conditions set forth by the Czech National Bank in a legal regulation.

Banks and legal entities (hereinafter referred to as "legal entities") shall withdraw counterfeit or altered banknotes and coins valued in Czech korunas or in a foreign currency, or banknotes and coins for which reasonable suspicion arises that they are counterfeit or have been altered, (hereinafter referred to as "counterfeit banknotes and coins") without compensation and shall hand them over to the Czech National Bank. Legal entities shall be entitled to demand of the person who presented the counterfeit banknotes or coins that this person prove his or her identity in a credible manner. The legal entity that accepted the counterfeit banknotes or coins shall notify the criminal law enforcement authorities of the withdrawal of the counterfeit banknotes and coins.

The Czech National Bank shall set forth by decree:
a) the par values, dimensions, weight, material, appearance and other attributes of banknotes and coins and the manner of their issuance into circulation;
b) the steps to be taken by natural and legal entities when accepting and handling legal tender, including the steps to be taken upon withdrawal of counterfeit banknotes and coins;
c) the manner of providing compensation for incomplete and damaged banknotes and coins;
d) the manner of terminating the validity of banknotes and coins and the manner and period of their exchange for other banknotes and coins;
e) the terms and conditions under which money symbols may be reproduced or objects imitating them may be produced.