People continue refusing to accept Rs 10 coins and this is moving to other coins as well…Who is to be blamed?

Rs 10 coins continue to be victimised as Indians worry which currency note/coin could be declared as invalid legal tender.

Though it is fair to say that people started refusing Rs 10 coins  even before demonetisation (this story from 22 Sep 2016 before demonetisation on 8 Nov 2016). But one cannot do away with the fact that uncertainty increased post demonetisation.

Infact one thought that this issue is over but not really. One first noticed this news (Oct 6 2017) which points to a Case against a shopkeeper in MP for not accepting Rs 10 coins.

A case has been registered against a shopkeeper at Joura town in Morena district of Madhya Pradesh for allegedly refusing to accept Rs 10 coins. “We registered a case on the complaint filed by a buyer who had offered two coins of Rs 10 to buy a handkerchief. The shopkeeper refused to accept the coins,” said Joura police station in-charge Praveen Tripathi.

The incident took place last evening. A charge under section 188 of the Indian Penal Code (disobedience to order duly promulgated by public servant) was pressed against the shopkeeper.

The punishment under the section can extend up to six months in prison. Following the reports that shopkeepers were refusing to accept Rs 10 coins, the district collector had recently issued a circular, stating that such a refusal would be considered disrespect to the Indian currency, Tripathi said.

Then I did a Google search and came across several such news:

As if this was not enough, the threat has moved to other coins as well.

Banks in UP (21 Sep 2017) and Singbhaum (8 Oct 2017) are refusing to accept coins of other denominations as well:

The priest of a prominent temple in Mirzapur recently complained to state finance minister Rajesh Agrawal that his bank was refusing to deposit the coins that the temple received as daily offerings without citing any plausible reason. The minister asked the officer concerned to look into the matter and the problem was resolved to the priest’s satisfaction.

But not everyone is as lucky as the priest. Small traders, retailers and vendors are in a fix these days as coins are piling up in their stocks and banks – both public and private – are turning them away.

Since the banks have imposed an undeclared ban on deposit of coins in denomination of Rs 1, 2, 5 and 10, many shopkeepers, vendors and auto-drivers are not accepting coins which they are now considering as illegal tenders. Interestingly, the same banks were found forcing customers to take bags of coins when they went to change their notes or draw money during demonetisation.

“We are facing problems as banks are refusing to accept coins on one pretext or the other. Our money has been blocked which is affecting our trade,” complained president of UP Adarsh Udyog Vyapar Mandal Sanjaya Gupta.


The general secretary of Singhbhum Chamber of Commerce and Industry, Vijay Anand Moonka has written to the RBI Governor seeking his instructions to local banks to accept coins deposited by the city traders.

In the letter to Urjit Patel, Moonka alleged that the majority of banks in the city were unwilling to accept coins having the denomination of Rs 2, Rs 5 and Rs 10. As a result of the refusal by banks, the traders have gathered a huge amount of coins worth several lakhs.

Moonka said the RBI governor should order the bank authorities to accept the coins in the larger interest of the trader community. He said the banks should hold special camps to deposit the coins.

The various experts who supported demonetisation forget how interfering with money on such a large scale creates this sense of fear and uncertainty amidst public. People start doubting which coin/note will be under the radar next and stop accepting the same. As the government/RBI could not effectively kill these rumors over Rs 10 coin, the fears have moved to other coins too.

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