Acceptance of Small Coins

The Reserve Bank of India has come across reports in certain sections of the Press and is also receiving complaints that small coins of 5, 10 and 20 paise are not being accepted by banks, commercial organisations and general public for payments on the plea that these coins are no more legal tender. It is clarified that though minting and issue of these coins has been stopped, they have not been withdrawn by Government of India. All such coins issued earlier continue to be legal tender and should be accepted by all concerned for payment and exchange. It is obligatory on the part of banks to accept these coins which they can get exchanged from the nearest office of the Reserve Bank.

P. V. Sadanandan

Press Release : 2002-2003/1223