RBI directs all banks to accept denomination coins from public

The Apex bank issued a notification in Mumbai, saying such denial in service causes inconvenience to the public at large as shopkeepers and traders refuse to accept coins for payment of goods and services.

"You are, therefore, once again advised to immediately direct all your branches to accept coins of all denominations tendered at their counters either for exchange or for deposit in accounts," RBI directed all the banks.

Also, RBI has advised all banks to accept coins, particularly in one and two rupee denominations by weightment or sachets of 100 coins each.

“In order to obviate the problems of storage of coins at the branches, coins may be remitted to the currency chests as per the existing procedure. The stock thus built in the currency chest should be utilised for the purpose of re-circulation.”

“In case the stocks of these coins reach beyond the holding capacity of the currency chest for lack of demand, the Issue Department of the Circle may be approached for remittance of coins.”

"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," RBI added.