The Reserve Bank of India has come across
reports that banks are reluctant to accept 50 paise and 25 paise coins. A recent
study conducted by the Reserve Bank through the Birla Institute of Technology
(BITS), Pilani also suggests that similar reluctance is exhibited by shopkeepers
and traders.
The Reserve Bank of India states categorically
that all small denomination coins including those of 50 paise and 25 paise coins
are legal tender and non-acceptance of any such coins is an offence. The Reserve
Bank has advised all banks to desist from any such restrictive practice. Members
of public should assert their right to get appropriate change and acceptance
of all denomination coins by banks in exchange.
P.V.Sadanandan
Manager
Press Release: 2005-2006/760
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