amit kumar choubey
(Querist) 16 July 2008
This query is : Resolved
Respected All, You might think that the qustion I am going to put is irrelevant. But in day today life everybody would have faced such situation.
On many occasions some shopkeepers refuse to accept 50 paise coin, which is illegal in every aspect. One cannot refuse to accept the same. My query is whether the person refusing to accept shall be liable for any punishment or not? If yes, then under what provision. With Regards, AmitChoubey
(Expert) 17 July 2008
Dear Amit, According to RBI reports presently 25 paise, 50 paise, one rupee, two rupees and five rupee coins are being issued. Coins up to 50 paise are called 'small coins' and coins of Rupee one and above are called 'Rupee Coins'. Though the coins in the denomination of 1 paise, 2 paise, 3 paise, 5 paise, 10 paise and 20 paise may still be in circulation, due to lack of demand these coins are not being issued. Hence 50 paise coin is still legal tender for payment upto Rs 10 and refusal to accept this is punishable under law. But who cares? The RBI had issued a notification stating refusal to accept currency, whether soiled or petty, as a cognizable offence. Another notification stated that all amount below 50 paisa should be rounded off to avoid inconvenience to public in shelling out change.