Accept all the coins as legal tender : Are you facing the issue of non-acceptance of ₹10 and other Old Currency Notes & Coins ? Then this news is for you exclusively. Due to some rumors, so many traders, merchants and even banks are not accepting exchange of 50 paise, ₹1, ₹2, ₹5, ₹10 and other Old Currency Notes & Coins. Hence The Reserve Bank of India (RBI) reacted on this issue and made announcement regarding accepting of 50 paise, ₹1, ₹2, ₹5, ₹10 and other Notes & Coins. Now public can continue to accept all the coins as legal tender.
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Public can continue to accept all the coins as legal tender: RBI
The Reserve Bank of India (RBI) puts into circulation coins minted by the Government of India. These coins have distinctive features. Coins in new denominations to meet transaction needs of public and coins in new designs to reflect various themes – economic, social and cultural – are introduced from time to time. As coins remain in circulation for a longer period, coins of different designs and shapes circulate at the same time. Presently, coins of 50 paise, ₹ 1/-, 2/-, 5/- and 10/- denomination of various sizes, theme and design are in circulation.
So many people, even don’t know that 50 paise coins are still in circulation. Banks should accept 50 paise coin for exchange.
Rumors regarding ban of ₹10 Coins
It is reported that there are doubts in some quarters, regarding the genuineness of such coins which has resulted in reluctance on the part of some traders, shop-keepers and members of public to accept coins. This has impeded the free use and circulation of coins in certain pockets of the country.
The Reserve Bank appeals to members of the public not to give credence to such rumours and continue to accept these coins as legal tender in all their transactions without any hesitation.
The Reserve Bank of India has separately reiterated its instructions to banks to accept coins for transactions and exchange at all their branches as advised vide DCM (NE) No.G-2/08.07.18/2018-19 dated July 2, 2018 and updated as on January 14, 2019.
Acceptance of coins
As per RBI’s Master Circular DCM (NE) No. G – 1/08.07.18/2017-18 dated July 03, 2017 on Facility for Exchange of Notes and Coins where it was advised that none of the bank branches should refuse to accept small denomination notes and / or coins tendered at their counters. However, Reserve Bank continues to receive complaints about non-acceptance of coins by bank branches.
No bank should refuse to accept exchange of old currency coins & notes
Such denial of service has reportedly, in turn, led to refusal on the part of shopkeepers and small traders, etc., to accept coins as payment for goods sold and services rendered causing inconvenience to the public at large. You are, therefore, once again advised to immediately direct all your branches to accept coins of all denominations tendered at their counters either for exchange or for deposit in accounts.
- We further advise that it will be preferable to accept coins, particularly, in the denominations of ₹ 1 and 2, by weighment. However, accepting coins packed in polythene sachets of 100 each would perhaps be more convenient for the cashiers as well as the customers. Such polythene sachets may be kept at the counters and made available to the customers. A notice to this effect may be displayed suitably inside as also outside the branch premises for information of the public.
- In order to obviate the problems of storage of coins at the branches, coins may be remitted to the currency chests as per the existing procedure. The stock thus built in the currency chest should be utilised for the purpose of re-circulation. In case the stocks of these coins reach beyond the holding capacity of the currency chest for lack of demand, the Issue Department of the Circle may be approached for remittance of coins.
The Controlling Offices may be advised to pay surprise visits to the branches and report the position of compliance in this regard to the Head Office. The reports may be reviewed at the Head Office and prompt remedial action taken, wherever necessary.
Any non-compliance in this regard shall be viewed as violation of instructions issued by the Reserve Bank of India and action including penal measures as applicable from time to time, may be initiated.
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Facility for Exchange of Notes and Coins
Sometimes you can not accept all the coins as legal tender like brittle, burnt, charred, stuck up notes, mutilated or imperfect currency note. So please refer to the Master Circular DCM(NE)No. G-1/08.07.18/2016-17 dated July 18, 2016 containing instructions on the facility for exchange of notes and coins. A revised version of Master Circular on the subject is annexed for your information and necessary action. This Master Circular is placed in our website www.rbi.org.in.