RBI asks banks, people to accept coins of all denominations

New Delhi: The Reserve Bank of India has appealed to members of the public not to give credence to rumours over genuineness of Indian coins and continue to accept these coins as legal tender in all their transactions without any hesitation.

“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,” RBI said in a circular.

Presently, coins of 50 paise, Re 1, Rs 2, Rs 5 and Rs 10 denomination of various sizes, theme and design are in circulation.

“The Reserve Bank of India puts into circulation coins minted by the Government of India. These coins have distinctive features. Coins in new denominations to meet transaction needs of public and coins in new designs to reflect various themes - economic, social and cultural - are introduced from time to time,” RBI added.

As coins remain in circulation for a longer period, coins of different designs and sizes circulate at the same time, it added.

The RBI added that it has separately reiterated its instructions to banks to accept coins for transactions and exchange at all their branches.