- Mar 22, 2011
Reserve Bank of India (RBI) regional director P Vijaya Bhaskar on Wednesday announced the government's decision to stop circulation of 25 paise and lesser denomination coins. "They shall no longer be a legal tender for payment as well as on account," he said.
"People can exchange the coins in banks. However, we won't accept them if submitted after June 29. Those living in rural areas can exchange them in banks closer to villages," he outlined.
Small coins below 25 paise include one, two, five, 10 and 20 paise. A circular has been sent to all banks to pass on the coins to RBI.
A senior RBI official said minting of coins of 25 paise denomination and below were stopped seven to eight years ago.
RBI has taken the following steps to ensure receipt of these coins from people
* All banks maintaining small coin depots have been told to make arrangements for exchange of coins of denomination 25 paise and below. RBI, central office, has advised at least 45 bans in this regard. The coins can be exchanged in branches of these banks during working days and till closing time for business hours on June 29
* Further, RBI, Bangalore, has made arrangements to receive small coins below 25 paise at its own counters. Many customers in and around Bangalore can avail these services.