What changed
Government of India issued a notification under the Coinage Act, 1906 to call in all 25 paise and below coins from circulation with effect from June 30, 2011. From July 1, 2011, these coins will no longer be legal tender for any payment. RBI directed banks maintaining small coin depots to exchange these coins at face value at their branches until June 29, 2011.
What it means for you
Banks must facilitate exchange of these low-denomination coins at face value for customers until the deadline. After June 29, 2011, banks cannot accept these coins for exchange. This impacts cash handling and coin management operations for cooperative banks.
What you must do
- Ensure all branches of StCBs/CCBs are aware of the June 29, 2011 exchange deadline.
- Arrange for exchange of 25 paise and below coins at face value at branches until June 29, 2011.
- Inform customers about the withdrawal and the last date for exchange.
- Acknowledge receipt of this circular to the respective RBI Regional Office.
Who it affects
State Co-operative Banks (StCBs), Central Co-operative Banks (CCBs), Banks maintaining small coin depots, All bank customers holding 25 paise and below coins
What is the last date for exchanging 25 paise and below coins?
The last date for exchange at bank branches is June 29, 2011. After that, these coins will not be accepted for exchange.
Will these coins be legal tender after June 30, 2011?
No, from July 1, 2011, coins of 25 paise and below will cease to be legal tender for payment as well as on account.
Which banks are required to exchange these coins?
All banks maintaining small coin depots, including State and Central Co-operative Banks, are required to exchange these coins at their branches at face value.