July 20, 2004

 

The Reserve Bank of India has come across news reports and has also received complaints that shopkeepers, traders, transport undertakings, Government Departments, etc., do not readily accept 25 paise and 50 paise coins on the plea that these coins are no more legal tender or they are not accepted by bank branches.

It is clarified for the benefit of public that all coins including 25 paise and 50 paise coins are legal tenders and will continue to be so. Reluctance on the part of any one to accept the coins, is, therefore, not correct. The Reserve Bank has advised all commercial banks to freely accept all the coins for exchange into banknotes. The Reserve Bank offices will also continue to freely accept all the coins for exchange into banknotes.

 

P. V. Sadanandan

Manager

Press Release : 2004-2005/81