Sunday, January 2, 2011

50 Paisa Coins - Minimum Denomination Coin

50 Paisa Coins  - Minimum Denomination Coin

Like all good things coming to an end, the era of 25 paisa is also coming to an end by 30th June, 2011.

10 paisa and 5 paisa coins have also become invisible in the market.

Come June 30 2011, 50 paisa will be the minimum coin accepted in the markets as all denominations below it will cease to be legal currency.

Legal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation. Paper currency is a common form of legal tender in many countries.

The Central Government, Ministry of Finance has notified on December 20, 2010 to call in from circulation the coins of denomination of 25 paisa and below, issued from time to time, with effect from June 30, 2011.

From this date, coins below 25 paisa shall cease to be a legal tender for payment as well as on account. The procedure for call in shall be notified separately by the Reserve Bank of India.

Consequently, from June 30, 2011 onwards these coins will not be accepted in transactions.

The minimum denomination coin acceptable for transaction will be 50 paisa from that date.

Also, in accounting, i.e. the entries in books of accounts, pricing of products/services/taxes shall also be rounded off to 50 paisa or whole rupee from that date. 

The notification was issued in exercise of the powers conferred by sub-section 15A of the Coinage Act, 1906 (3 of 1906).

So, folks time to search your cupboards for 5,10,25 paisa coins and store them carefully. These coins will now will become collector’s items and be associated with nostalgia.

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