Friday, 16 February 2018

RBI Strictly Advise All Banks to Accept Coins

The Reserve Bank of India (“RBI”) provides facility for exchange of notes and coins. All the banks are strictly advised that the bank branches should not refuse to accept small denomination notes and / or coins tendered at their counters.

Even though an unusual situation is prevailing within different parts of the country with traders, shopkeepers, vendors, are refusing to accept coins following rumors that the government has banned them. On the other hand the bankers have also refused to accept them on the pretext of not having enough space to store it in the bank and also because it takes more time to count the coins. The other reason offered by the bank officials for not accepting the coin is that it is time consuming and disrupts other banking operations.

In order to provide safeguards against these situations the RBI issue notification on February 15, 2018 “Acceptance of coins” by banks.

The RBI strictly advises Chairman, Managing Director, and Chief Executive Officer of all banks to direct all their branches to accept coins of all denominations tendered at their counters either for exchange or for deposit in accounts.

The RBI Further advises that it will be preferable to accept coins, particularly, in the denominations of Rupee 1 and 2, by weighment.  However, accepting coins packed in polythene sachets of 100 each would perhaps be more convenient for the cashiers as well as the customers. Such polythene sachets may be kept at the counters and made available to the customers. A notice to this effect may be displayed suitably inside as also outside the branch premises for information of the public.

The RBI advises to Controlling Offices to pay surprise visits to the branches and report the position of compliance in this regard to the Head Office. The reports may be reviewed at the Head Office and prompt remedial action taken, wherever necessary. Any non-compliance in this regard shall be viewed as violation of instructions issued by the Reserve Bank of India and action including penal measures as applicable from time to time, may be initiated.

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