RBI says all coins must be accepted as legal tender
Mumbai, Jun 26: The Reserve Bank of India (RBI) Wednesday asked the public, casting aside their doubts, to continue accepting coins of various denominations pumped into circulation regularly.
The RBI puts into circulation coins minted by the central government. It said coins have distinctive features which are being introduced from time to time with various themes -- economic, social and cultural, in order to meet the transaction needs of public.
As coins remain in circulation for a longer period, coins of different designs and shapes circulate at the same time, the RBI said.
"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," it said in a release. Currently, coins of 50 paise, Rs 1, Rs 2, Rs 5 and Rs 10 denomination of various sizes, theme and design are in circulation.
Separately, the RBI also asked all banks not to turn away customers who come to exchange coins at their branches. The RBI circular on Facility for Exchange of Notes and Coins advises banks that none of the bank branches should refuse to accept small denomination notes and/or coins tendered at their counters. However, the RBI continues to receive complaints about non-acceptance of coins by bank branches, causing considerable inconvenience to the public at large, the RBI said in a notification.
"You are, therefore, once again advised to immediately direct all your branches to accept coins of all denominations tendered at their counters for transactions or exchange and ensure strict compliance in the matter," the RBI asked all banks through the notification.