Mumbai, May 18 (IANS) Coins of 25 paise denomination, popularly known as ‘paavli’ or ‘chaar anna’, will be withdrawn from June 30, the Reserve Bank of India announced here Wednesday.
‘The coins of denomination of 25 paise and below will cease to be legal tender from June 30. These will not be accepted for exchange at bank branches from July 1, 2011 onwards,’ the RBI said in a statement.
The central bank appealed to the people to exchange stocks of these coins at the branches of banks maintaining small coin depots or at RBI offices around the country.
The exchange facility for these coins shall be available till the close of business hours June 29, 2011.
The decision comes in the wake of the Section 15A of the Coinage Act, 1906, by which the central government had decided to withdraw the coins of denomination of 25 paise and below from circulation from June 30, 2011.
With the end of the era of 25 paise coins and below, the 50 paise (or half-a-rupee) shall be now the lowest denomination coin in public circulation. Other coins include those of denominations one, two, five, and 10 rupees.