A recent press report said that the regional office of the Reserve Bank of India in the southern Indian city of Thrivanathpuram has notified that the last date for exchanging coins of denomination of 25 paise or less is June 29.
Reports said that coins can be exchanged at currency chest or small coin depot-maintaining banks at the bank’s branches till the close of business. The central bank had also published a ‘corrigendum’ in the newspaper regarding last date for coin exchange process.
Mr. K. V. Viswanathan, Deputy General Manager of Reserve Bank said that the coins shall cease to be legal tender thereafter and it will not be accepted for exchange from June 30.
Reports also said that the Government of India has decided to fix 50 paise at the base for any transactions.
Pubic sector lenders like State Bank of India (SBI), State Bank of Travancore (SBT), Syndicate Bank, Punjab National Bank, Union Bank of India, Vijaya Bank, Indian Bank, Bank of India, Bank of Baroda and private sector lenders including Dhanalaxmi Bank, Federal Bank, Catholic Syrian Bank and South Indian Bank will have small coin depots for exchange.
Earlier the RBI had hiked the base rates which have made loans (home loan, personal loan, vehicle loan etc) costlier to the borrowers.