RBI asks banks to accept notes and coins of small denominations

RBI has directed all banks to accept small denomination notes and coins tendered at their counters. The apex bank issued a notification in Mumbai yesterday, saying such denial of service causes inconvenience to the public at large as shopkeepers and traders refuse to accept coins for payment of goods and services. 

RBI has advised banks to accept coins, particularly in one and two rupee denominations by



weighting or sachets of 100 coins each. Banks have been asked to remit excess coins at currency chest as per existing procedure. 

Surprise checks by Controlling Officer have also been advised to report compliance or initiate remedial action, wherever necessary. RBI has said that non-compliance in this regard will be in held in violation and penal measures will be initiated.