The ICICI Bank has put up a notice outside their bank branch informing customers that certain coins of denomination of Re 1 or 50 paise are going out of circulation and will not be issued again for the purpose of transactions. Read on to know more about it.
iStockIn a 2004 circular, the RBI has directed banks that old coins of value up to Re 1/-, made from Cupro-nickel and Aluminium should be withdrawn and sent to Mints for melting.
If you have Re 1 and 50 paise coins, then you should check to see if they are the cupronickel (copper-nickel) coins shown below. This is because as per a notice put up by an ICICI Bank branch in a New Delhi locality, certain coins are not allowed to be re-issued. This means that once these are deposited into the bank, they will not be issued by the bank again. These coins will just be taken back by the Reserve Bank of India (RBI) from the concerned banks.
However, this does not mean that such coins are not legal tender. These coins are legal tender, but these are being taken out of circulation as they are old coins and were in common use in 1990s and early 2000s.
As per the ICICI Bank branch notice, the following coins are not for re-issue under RBI directives:
a) Cupronickel coins of Re 1 b) Cupronickel coins of 50 paise c) Cupronickel coins of 25 paise d) Stainless steel coins of 10 paise e) Aluminium bronze coins of 10 paise f) Aluminium coins of 20 paise g) Aluminium coins of 10 paise h) Aluminium coins of 5 paise
What do these Re 1 and 50 paise cupronickel coins look like?
Source: RBI website
Are these coins still legal tender? Do keep in mind that although they are being taken out of circulation, they can be used for transactions, i.e., are still considered as legal tender. Once you deposit these coins with the bank, they will not be issued again for transactions. You will get coins with new design for transaction purposes.
The ICICI Bank branch notice clarifies that all coins in denomination of 50 paise, Re 1, Rs 2, Rs 5, Rs 10 and Rs 20 of various sizes, theme and design issued from time to time by the government continues to be legal tender.
In a 2004 circular, the RBI has directed banks that old coins of value up to Re 1/-, made from Cupro-nickel and Aluminium should be withdrawn and sent to Mints for melting.
Do note that the Government of India decided to call in from circulation coins of denomination of 25 paise and below with effect from end-June 2011. Thereafter, these coins ceased to be legal tender for payment as well as on account.
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