RBI Asks Banks to Stop Accepting 25 Paise Coins
Feb. 2 – The Reserve Bank of India has asked state banks and private lenders to stop accepting 25 paise coins after June 30, 2011.
Inflation has reduced the monetary value of the paise to an extent that the bank decided that it is no longer useful to have a 25 paise coin function as legal tender. Many traders refuse to accept coins below 50 paise, but previously were not legally allowed to do so.
The general public can exchange small denomination coins at any branch of most banks in India.
The central bank has also asked for low-denomination notes up to Rs10 to be turned into coins since these notes are replaced frequently due to high usage.
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