Indian Currency- Earlier there was a lot of demand for coins of 1,2 and 5 rupees. But gradually the demand for coins has started decreasing.
Indian Currency- Earlier there was a lot of demand for coins of 1,2 and 5 rupees, but gradually the demand for coins started decreasing. Alam is that now people are hesitant to take coins. The demand for coins has reduced to such an extent that the Reserve Bank of India (RBI) has a stock of coins. This is the reason that now the central bank has increased the incentive three times on coins. RBI says that under the clean note policy, coins are being provided to banks by the central bank.
Know how much the incentive increased
till now, RBI used to give an incentive of Rs 25 per bag of coins to the banks, that is, on taking a bag of coins, Rs 25 was given separately to the bank as an incentive. Now it has been increased to 65 rupees. RBI has increased the incentive amount for banks from Rs 25 per bag to Rs 65 per bag for giving coins to the common people. This step has been taken under the clean note policy. At the same time, its purpose is to ensure that all bank branches provide better service to the people regarding exchange of notes and making available coins.
RBI said in a notification that banks will be given an additional incentive of Rs 10 per bag for coin distribution in rural and small towns. The central bank said, with effect from September 1, 2021, an incentive of Rs 65 per bag will be given instead of Rs 25 for distribution of coins on the basis of net withdrawal from currency chest (CC), without waiting for the claims of banks.
Give coins for business transactions The
RBI circular states that in order to meet the coinage requirements (requirement of more than one bag in a single transaction) of bulk customers, banks are advised to offer coins to such customers purely Provide coins for business transactions. Banks may endeavor to provide services (door step banking) to the customers at their home or work place instead of visiting the branches as per the policy approved by their Board of Directors.
RBI advises banks
According to RBI, it is necessary for such a customer to be KYC compliant and a record of the supply of coins should be maintained. Banks are advised that this facility should not be misused, for this, check-up should be done. At present, the distribution of coins to retail customers is done in small lots. This service is not provided to wholesale customers.
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