Please refer to the directions/instructions advised to you in our letter DCM(RMMT) No. 1181/11.37.01/2003-04 dated April 5, 2004, on acceptance of coins by bank branches. The hardship faced by the members of public because of non-acceptance of coins by branches of commercial banks was deliberated upon, among other issues, in the Conference of Regional Heads of Issue Offices and Senior Officers from the chest maintaining banks, held at the Reserve Bank Staff College, Chennai, on November 22, 2004.

2. As we still continue to receive directly as well as indirectly complaints about non-acceptance of coins by bank branches, we advise you once again to immediately direct all your branches to accept coins of all denominations tendered at their counters either for exchange or for deposit in accounts. We hope that a notice informing public about the availability of exchange facility and acceptance of coins has been displayed suitably inside as also outside the branch premises for information of the public.

3. In order to facilitate the handling of coins received over the counters, you may consider installation of sorting machines, especially in big organizations /temple towns/branch premises. As advised earlier, the aluminium coins of 5 paise, 10 paise and 20 paise, aluminium bronze coins of 10 paise, stainless steel coins of 10 paise and cupronickel coins of 25 paise, 50 paise and Re.1 may be remitted to the Government of India Mints at Mumbai/Kolkata/Hyderabad with prior intimation as per the existing procedure. Efforts should be made to recirculate the stainless steel coins of 25 paise, 50 paise and Re.1 and cupronickel coins of Rs. 2 and Rs. 5 denominations. However, in case of lack of demand for these coins, the Issue Department of the Circle may be approached for remittance of coins.

4. You are once again requested to issue necessary instructions to all your bank branches to accept coins from public without any restriction so as to avoid any inconvenience to the public.

5. Please acknowledge receipt and apprise us of the action taken in the matter.

Yours faithfully,

(U.S.Paliwal)
Chief General Manager

List of Banks to whom letter DCM (Plg) No. G-31 /10.03.00/2004-05 dated 27^th December 2004, is addressed.