RBI: All coins are legal tender irrespective of shape and sizes
Coins have been circulating for a very long time, coins of different shapes, sizes and designs circulate at the same time stated by RBI. Now a days ,coins of 50 paisa, Re 1,Rs 2,Rs 5,Rs 10 denomination of various designs and sizes are in circulation.
It was stated by the Reserve Bank of India that coins of different shapes and sizes which were being used from time to time, have different features which reflect upon economic , cultural and social themes to cater the transactional needs of public in general.
The RBI notified that coins of different denomination of different shapes and sizes are legal tender in order to clear all speculations regarding its genuineness. To ask general public and banks to function without obstruction. It was found that there were doubts and speculations regarding the genuineness of some coins which further led to reduction in acceptance of coins by shop keepers, traders and public at large. This lead to free flow of coins in certain areas of the country.
Important declarations by the RBI are as follows:
- The RBI asked all the commercial banks that they should not refuse to accept small denomination coins on their counters
- The RBI declared that all coins of different denominations are legal tender which helped in setting aside rumors regarding the genuineness of some coins which obstructed smooth flow of coins in the economy. This helped in free circulation of coins of various kinds. So, the RBI puts into circulation coins minted by the central government.
The RBI instructs members of commercial bank branches to not to turn down the customers who comes for exchange of coins of different kinds on their counters. In case of non compliance, strict action will be taken by RBI against such banks.The RBI appeals general public to not to believe in rumors regarding the genuineness of the coins and continue accepting coins as legal tender without any hesitation for free circulation of coins in the economy.
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