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50 paise coin loses value in market
Fifty paise coins, the smallest denomination in the Indian currency, is gradually losing its charm despite the Reserve Bank of India says that it is still a legal tender.
Kakinada: Fifty paise coins, the smallest denomination in the Indian currency, is gradually losing its charm despite the Reserve Bank of India says that it is still a legal tender.
The RBI declared that 25 paise coins are phased out and no longer in use in 2011.According to history, the Mughal rulers introduced ‘Rupiya’ coins made of silver metal as medium of exchange those days. But from shopkeepers to traders, rickshaw pullers and bus conductors, the smallest denomination of currency is nowadays not acceptable any more.
In some shops, if anybody offers a 50 paise coins they are rejecting them saying it won't go for us afterwards. Some people are donating these coins to beggars and orphans. Even some persons dropping them in ‘Hundis’ in temples. It is better to donate coins in a plate of a temple priest or drop them in a hundi to get rid of them, says Mohan, a working professional.
Instead of giving a change for 50 paise coin local kirana merchants simply giving a toffee or a chocolate of same worth, says Bhavani, a house wife from Pithapuram. Government employees like RTC conductors are not willing to take 50 paise coins even though they knew that they are in force. “What should I do if no passenger is willing to take 50 paise coins instead they argue with us, even though we try to convince them that they are still in circulation” says an RTC bus conductor.
Before deciding on stoppage of coins from circulation in markets, the RBI issues a notice under sub-section 15A of Coinage Act,1906 stating when they will stop the coins from circulation.
In case of 25 paise coin which was stopped by RBI from circulation since June 2011, the RBI issued a notice in 2010. The RBI stops circulation when the intrinsic value of coins surpasses the actual face value of coin. Which means If the metal used for making coin exceeds than the original face value of coin then RBI stops minting.
Speaking to The Hans India, Canara Bank Pithapuram Manger M. Ramya clarified that they accept 50 paise coins if anybody deposits into their accounts. Ramya also told that they charge some amount on depositing the coins as service charge. “We have to accept them as they are legal tender and have a value,” she said.
By Peri Srikanth
