Reserve Bank on Wednesday asked public to exchange 25 paise coins and those with lower denominations with banks before June 30, the day from which they would be demonetised or cease to be a legal tender for payment.
“Coins of denomination of 25 paise and below will cease to be legal tender from June 30, 2011. These will not be accepted for exchange at bank branches from July 1, 2011, onwards,” the RBI said.
“The RBI has, therefore, appealed to the members of public to exchange these coins at the branches of banks maintaining small coin depots or at the offices of the Reserve Bank,” the central bank said.
The exchange facility at specified bank branches or the Reserve Bank offices will be available till the close of business on June 29, 2011.
RBI has instructed the banks maintaining small coins to arrange for exchange of coins of denomination of 25 paise and below for their face value at their branches.
The government had decided to withdraw the coins of denomination of 25 paise and below from circulation from June 30.
There is no use of 50 paisa coin also.