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Coins pile up at banks, eat into their cash limits

BENGALURU: Bank branches in Bengaluru are housing sackfuls of Rs 10 coins, issued by the Reserve Bank of India, which accommodations and most of the people are refusing to just accept.
The coins had been a number of the small trade launched by RBI to cater to the resort trade’s necessities. Every month, RBI releases coins of Rs 1, 2, five and 10 denominations to bank branches to meet the desires of accommodations. Among the coins launched in January, greater than 50% had been of Rs 10 denomination, but they have simplest added to the stock of lifeless money piling up in bank branches for the reason that Centre introduced demonetisation in November 2016.

“At some point of time after demonetisation, misinformation a few ban on Rs 10 coins received credence among people. Since then, people don't seem to be accepting these coins and they are increasing in branches,” said a senior reliable of a nationalised bank whose branch has a stock of Rs 10 coins valued at around Rs eight lakh. In customary path, the branch wouldn’t have had coins value greater than Rs 50,000, he added.

Bank branches are feeling hemmed in by the coins as they are allowed to hold only a limited amount of cash depending on their transactions. In many branches, the lifeless stock of Rs 10 coins has crossed 25% of the cash limit.

Since the Rs 10 coin is legal tender and the RBI’s policy mandates that coins and notes of lower denominations must be in circulate, the apex bank is not taking back the coins. It could also be asking banks not to refuse to just accept Rs 10 coins from customers.

However, a number of bank branches are sending back customers, announcing they have no space to stock the coins, which simplest strengthening the public belief that the coins had been banned.

“Time and once more since November 2016, RBI has been announcing that Rs 10 coins have now not been banned. Banks are urged to just accept them for transaction and trade at all branches,” said an reliable from RBI’s factor department.

Hoteliers said they aren't taking Rs 10 coins since people don't seem to be accepting them at their counters. As a cascading impact, shopkeepers too have stopped taking coins from customers.

“What we sought from RBI was once liberate of Rs 1, 2 and five coins. But greater than half of the stock launched comprised Rs 10 coins,” said P Rao, secretary of Bangalore Hoteliers Association. “Last week, we met RBI officers and apprised them of the present problem. We hope they'll address the problem,” he said.

Bank officers said RBI must take steps to widely publicise the validity of Rs 10 coins and create consciousness.

“While it is the collective duty of both RBI and bank branches to dispel the misunderstanding about Rs 10 coins, RBI has to take back the piled-up stock from banks and cling it until their burden is eased,” said MS Mahabalesawra, managing director and leader government officer of Karnataka Bank.

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