What changed
RBI issued a fresh circular on January 19, 2005, reinforcing earlier instructions from October 2003 and April 2004. It noted that complaints about coin non-acceptance continue, leading to image risk. The circular demands periodic staff sensitization and strict adherence to surprise visit protocols by regional/zonal managers, with head office review of their reports.
What it means for you
Banks face heightened regulatory scrutiny on coin acceptance. Non-compliance can damage reputation and invite RBI action. Lenders must ensure all branches accept coins without any restrictions, and internal audit mechanisms must be robust to catch violations early.
What you must do
- Conduct periodic sensitization sessions for branch staff on mandatory coin acceptance of all denominations.
- Ensure regional/zonal managers carry out surprise visits to verify compliance and submit reports to head office.
- Review surprise visit reports at head office level and take corrective action where needed.
- Acknowledge receipt of this circular to RBI as instructed.
Who it affects
All public and private sector banks, Branch managers and staff, Regional and zonal managers, Head office compliance teams
What denominations of coins must banks accept?
Banks must accept coins of all denominations without any restriction from the public.
What action is required from regional managers?
Regional and zonal managers must conduct surprise visits to branches to verify compliance with coin acceptance instructions and submit reports to head office.
Why is RBI emphasizing this now?
Despite earlier circulars, complaints and negative press about coin rejection persist, creating image risk for the banking system.