RBI: Rs 10 coin is legal tender..

Yesterday, RBI issued a press release saying Rs 10 coins are legal tender. They also shared links to 14 types of Rs 10 coins with all being legal tender:

It has come to the notice of the Reserve Bank that in certain places there is reluctance on part of traders and members of public to accept ₹ 10 coins due to suspicion about their genuineness.

It is clarified that the Reserve Bank puts into circulation, the coins minted by mints, which are under the Government of India. These coins have distinctive features to reflect various themes of economic, social and cultural values and are introduced from time to time.

As coins have longer life, coins of different designs and shapes circulate in the market at the same time. So far the Reserve Bank has issued ₹ 10 coins in 14 designs and the public has been informed of their distinctive features through Press Releases (list appended). All these coins are legal tender and can be accepted for transactions.

The Reserve Bank has in the past also issued a Press Release (November 20, 2016) requesting members of the public to continue to accept coins of ₹ 10 denomination as legal tender in all their transactions without any hesitation.

Hmm. It seems the rumors have continued.

In the previous post written in Oct 2017, there were incidents of non-acceptance across the country. This started before demonetisation and intensified post the event in Nov-2016.

I dug up more and found incidents continued. Infact, in some places other coins especially Rs 1 coin is not being accepted. Most of these incidents have been around Dec-Jan month.

So fair bit going on leading to RBI response.

I was going through the Indian Coinage Act 1906. It specifies how many coins can be accepted for payment denomination wise.

Coin when a legal tender
(1) The coins issued under the authority of section 4 shall be a legal tender in payment or on account, in case of–
(a) a coin of any denomination not lower than one rupee, for any sum not exceeding one thousand rupees;
(b) a half-rupee coin, for any sum not exceeding ten rupees; 
(c) any other coin, for any sum not exceeding one rupee:

Provided that the coin has not been defaced and has not lost weight so as to be less than such weight as may be prescribed in its case.
(2) All new coins in the naya paisa series, designated as such under the notification of the Government of India in the Ministry of Finance, Department of Economic Affairs, Number S.R.O. 1120, dated the 11th May, 1956 issued prior to the commencement of the Indian Coinage (Amendment) Act, 1964, shall continue to be a legal tender in payment or on account, in case of,–
(a) a half-rupee or fifty naye paise coin, for any sum not exceeding ten rupees;
(b) any other coin, for any sum not exceeding one rupee. 

This means:

  • If coins above Rs 1 denomination, payment of maximum Rs 1000 can be made.
  • If coins of 50 paisa, maximum payment is Rs 10.
  • If coins less than 50 paisa, maximum payment 1 Rupee. But, this is not valid anymore as we do not have coins below 50 paisa.

I mean all this crisis in not accepting Rupee coins for legal tender has been going for a while. It should be stemmed..

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One Response to “RBI: Rs 10 coin is legal tender..”

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