Withdrawal of 25 Paise and Below Coins from Circulation
Current · Source: Reserve Bank of India · RBI/2010-11/428 · issued 15 Mar 2011 · ~1 min read
Quick answerGovernment withdraws 25 paise and lower denomination coins from June 30, 2011. Banks must exchange these coins at face value until June 30, 2011. Post that, no exchange at bank branches.
The rule, in the simplest words
The government stopped using 25 paise and smaller coins on June 30 2011.
Until June 30 2011, banks with small coin depots must exchange those coins at face value (the same amount printed on the coin).
From July 1 2011, banks will not accept 25 paise or smaller coins for exchange at any branch.
Banks must tell customers about the change and work with the small‑coin depots (places where banks store lots of coins) to finish the exchange before the deadline.
How it plays out — a real example
Anita, the branch manager of a Primary Urban Co-operative Bank in Indore, receives a customer who brings a handful of 25 paise coins on June 20 2011. She exchanges them at face value using the bank's coin depot, records the transaction, and gently reminds the customer that after July 1 2011 the bank will no longer accept those coins.
What changed
The Government of India decided to withdraw coins of 25 paise and below from circulation effective June 30, 2011. Banks with small coin depots must exchange these coins at face value until June 30, 2011. From July 1, 2011, these coins will not be accepted for exchange at bank branches.
What it means for you
Primary Urban Co-operative Banks must arrange exchange of these coins at their branches until the deadline. After June 30, 2011, these coins lose legal tender status for exchange at banks. Banks should inform customers and manage coin inventory accordingly.
What you must do
Arrange exchange of 25 paise and below coins at face value at all branches until June 30, 2011.
Inform customers about the withdrawal and exchange deadline.
Ensure no exchange of these coins is accepted from July 1, 2011 onwards.
Coordinate with small coin depots for exchange logistics.
Who it affects
Primary Urban Co-operative Banks, Customers holding 25 paise and below coins, Small coin depots
RBI’s words: “In partial modification of the above circular, we advise that the coins of 25 Paise and below will be exchanged”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/428
UBD.BPD. (PCB). Cir.No. 39 /09.73.000/2010-11
March 15, 2011
The Chief Executive Officers,
All Primary (Urban) Co-operative Banks.
Madam / Dear Sir,
Coins of 25 Paise and Below - Withdrawal from Circulation
Please refer to the Govt. of India Gazette Notification S.O 2978(E) dated December 20, 2010 and the Reserve Bank Press Release dated February 1, 2011 on the above subject (copies enclosed).
2. The Government of India has decided to withdraw coins of denomination of 25 paise and below from circulation with effect from June 30, 2011. The Reserve Bank of India has instructed the banks maintaining small coin depots to arrange for exchange of coins of denomination of 25 paise and below for their face value at their branches. The coins will be exchanged at the branches of these banks as also the offices of the Reserve Bank till the close of business on June 30, 2011. Coins of denomination of 25 paise and below will not be accepted for exchange at the bank branches from July 1, 2011 onwards. The UCBs may take note of the above instructions.
3. Please acknowledge receipt to the Regional Office concerned.
Yours faithfully
(Uma Shankar)
Chief General Manager
Encls: 3
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/428 · issued 15 Mar 2011. The plain-English explanation above is BankPulse’s own independent summary.
Arrange exchange of 25 paise and below coins at face value at all branches until June 30, 2011.
📜 Compliance
Inform customers about the withdrawal and exchange deadline.
Ensure no exchange of these coins is accepted from July 1, 2011 onwards.
Coordinate with small coin depots for exchange logistics.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Branch Manager at a bank this circular applies to (Primary Urban Co-operative Banks, Customers holding 25 paise and below coins, Small coin depots), your first concrete step on “Withdrawal of 25 Paise and Below Coins from Circulation” is: “Arrange exchange of 25 paise and below coins at face value at all branches until June 30, 2011.” (RBI issued this 15 Mar 2011).
Circular: RBI/2010-11/428 -- Withdrawal of 25 Paise and Below Coins from Circulation
Issued: 15 Mar 2011
Action required: Arrange exchange of 25 paise and below coins at face value at all branches until June 30, 2011.
Action required: Inform customers about the withdrawal and exchange deadline.
Action required: Ensure no exchange of these coins is accepted from July 1, 2011 onwards.
Action required: Coordinate with small coin depots for exchange logistics.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6287&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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