DCM (RMMT) No.2945/11.37.01/2017-18
The Chairman and Managing
The Managing Director/
The Chief Executive Officer
We invite a reference to
Paragraph 1 (d) of our Master Circular DCM (NE) No. G -
1/08.07.18/2017-18 dated July 03, 2017 on Facility for Exchange of
Notes and Coins where it was advised that none of the bank branches should
refuse to accept small denomination notes and / or coins tendered at their
counters. However, Reserve Bank continues to receive complaints about
non-acceptance of coins by bank branches. Such denial of service has
reportedly, in turn, led to refusal on the part of shopkeepers and small
traders, etc., to accept coins as payment for goods sold and services
rendered causing inconvenience to the public at large. 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.
2. We further advise that it
will be preferable to accept coins, particularly, in the denominations of ?
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
3. 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.
4. The Controlling Offices may
be advised 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
5. 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.
6. Please acknowledge receipt.