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
What is the deadline for exchanging 25 paise and below coins?
The exchange must be completed by June 30, 2011. After this date, these coins will not be accepted at bank branches or RBI offices.
Can these coins be exchanged after June 30, 2011?
No, from July 1, 2011 onwards, bank branches and RBI offices will not accept these coins for exchange.
Who is responsible for the exchange?
Banks maintaining small coin depots are instructed to arrange exchange at their branches. Primary Urban Co-operative Banks must take note and comply.