Banks should not refuse to accept coins of all denominations from customers and any non-compliance may result into penal action, the Reserve Bank said today.
Despite advisory that none of the bank branches should refuse to accept small denomination notes or coins tendered at their counters, complaints keep coming about non-acceptance of coins by bank branches, RBI said.
Denial to accept coins, either for exchange or deposit, leads to refusal on the part of the shopkeepers and small traders which causes inconvenience to the public at large, the bank said.
"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," RBI directed all the banks.
The regulator has also advised banks, preferably to accept coins, particularly, in Re 1 and Rs 2 denominations 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, it said.
"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 public."
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, it added.
The stock thus built in the currency chest should be utilised for the purpose of re-circulation.
"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," RBI added.
FAQs
Is this legal? Yes. A bank can set its own internal policy as to whether it will accept or exchange unrolled coins for currency.
Do banks accept coins for deposit in India? ›
Therefore, individuals have the freedom to deposit any amount of coins into their bank accounts. In accordance with the RBI's guidelines, all banks in India are obligated to accept coin deposits from their customers. No bank has the authority to refuse such deposits.
What is the RBI circular for coin deposit? ›
Considering that accepting coins packed in sachets of 100 pieces each would be more convenient for the cashiers as well as the customers, such sachets shall be kept at the counters and made available to the customers. Coins, in the denominations of ₹1 and ₹2 shall be accepted by weighment.
Is there a limit on coin acceptance? ›
Coin of any denomination not lower than one rupee shall be legal tender for any sum not exceeding one thousand rupees. Fifty paise (half rupee) coin shall be legal tender for any sum not exceeding ten rupees.
Can a bank refuse unrolled coins? ›
“Different banks have different coin acceptance policies,” Kenneally says. “Some accept rolled coins and some accept loose coins to process through a coin-counting machine. If they have a machine, loose coins are usually preferred.”
Can I take pennies to the bank? ›
Those who have pennies at home can bring them to a bank to redeem for cash. "I work at one of our local banks," said Linda Morris.
How many coins can I take to the bank? ›
Maximum amounts per bag
- £1 or £2 coins to the value of £20.
- 50p or 20p coins to the value of £10.
- 10p or 5p coins to the value of £5.
- 2p or 1p coins to the value of £1.
If you're looking for a place to exchange your coins for free, consider these options. Big banks. Many big banks such as Chase, Wells Fargo and Bank of America will take rolled coins.
Can I give coins to my bank for cash? ›
Most banks or credit unions will accept rolled coins from customers, but some may charge a fee for the service. Some banks, such as Wells Fargo, will exchange rolled coins for customers without a fee. Wells Fargo says it also offers free coin wrappers. Check your bank's policy.
What is the highest denomination coin RBI can issue? ›
10,000. The notes denomination is notified by Government and RBI acts accordingly. Under Section 22 of the Reserve Bank of India Act, RBI has sole right to issue currency notes of various denominations except one rupee notes.
Here is all you need to know about legal tender in India.
Coins with denominations equal to or higher than one rupee can be used as legal tender for amounts up to one thousand rupees. Additionally, fifty paise (half a rupee) coins can be used as legal tender for amounts up to ten rupees.
What is the minimum denomination coin acceptable for transaction? ›
In India, the minimum denomination coin acceptable for transaction is 50 Paise.
Why is there a coin shortage in the US? ›
There is not a coin shortage. However, the circulation of coins was significantly disrupted due to the COVID-19 pandemic. More than half of coins in the U.S. are sitting in consumers' coin jars in their homes.
What is the maximum amount of money in coins you can have and not be able to make exact change for a dollar? ›
What about pennies? We know we must have less than five, because anything higher will allow us to give change for a dollar. However, if we add four pennies, we get a grand total of $1.19 and we still can't give change for a dollar!
Can you just bring coins to the bank? ›
Most banks or credit unions will accept rolled coins from customers, but some may charge a fee for the service. Some banks, such as Wells Fargo, will exchange rolled coins for customers without a fee. Wells Fargo says it also offers free coin wrappers. Check your bank's policy.
Can a bank refuse to give you a change? ›
There is no law that requires banks to make change.
Are banks obliged to take coins? ›
Many high street banks let you deposit old £1 coins into your bank account or trade them in. Just be aware that this is done at your bank's discretion – as these coins are no longer legal tender, they aren't under any legal obligation to accept them.
How much coins can I deposit in bank? ›
Whatever the amount of coins you have, You can deposit. There is no particular limit..
