What changed
The Government of India, via Gazette Notification S.O 2978(E) dated December 20, 2010, decided to withdraw coins of 25 paise and below from circulation. RBI instructed banks with small coin depots to exchange these coins at face value at their branches until June 29, 2011. From July 1, 2011, these coins will no longer be accepted for exchange or as legal tender.
What it means for you
Regional Rural Banks must facilitate exchange of these coins at face value before the deadline. After June 30, 2011, these coins lose legal tender status, so banks cannot accept them for transactions. This impacts cash handling and customer service operations.
What you must do
- Arrange exchange of 25 paise and below coins at all branches until June 29, 2011.
- Inform customers about the withdrawal and exchange deadline through notices.
- Ensure no acceptance of these coins for exchange or transactions after June 30, 2011.
- Acknowledge receipt of this circular to the respective RBI Regional Office.
Who it affects
Regional Rural Banks, Branches maintaining small coin depots, Customers holding 25 paise and lower denomination coins
What is the deadline for exchanging 25 paise coins?
Branches must exchange these coins at face value until the close of business on June 29, 2011.
What happens after June 30, 2011?
From July 1, 2011, these coins cease to be legal tender and will not be accepted for exchange at bank branches.
Which banks are affected by this circular?
All Regional Rural Banks and banks maintaining small coin depots are required to follow these instructions.