10-rupee coins ‘heap’ miseries on banks

Repeated announcements by the Reserve Bank of India that 10-rupee coin is legal tender have failed to allay unfounded fears of traders and the general public that the coins have lost currency.

Heaps of 10-rupee coins, that have been deposited by traders and the general public with the banks, have become a burden on the financial institutions.

With traders turning down the coins, following the rumours that the 10-rupee coins are banned, customers are left with no option but to deposit them with the banks. This has resulted in a massive pile up of coins of the denomination of 10 in the banks.

According to the sources, in Dharwad district alone, 10-rupee coins worth Rs 20 crore have been deposited with the banks. In the state, banks are holding the 10-rupee coins worth more than Rs 300 crore. Since, the coins are deposited in savings bank accounts of the customers, the banks have to pay them the interest. Also, with customers not accepting the coins of the said denomination, the money accumulated thereon has turned into idle capital for the banks.

In several states and major cities, including Mumbai, 10-rupee coins are in circulation. There was a proposal before the RBI of sending the coins to such states/cities. The central bank, however, rejected the proposal. The RBI questioned the banks, “if the banks in Maharashtra can put the coins in circulation why can’t you do the same.”

Senior bank officers have suggested the banks to give the customers at least one 10-rupee coin when they withdraw money from their accounts. By doing so, the coins can be put into circulation, they said.

A bank officer, on the condition of anonymity, told DH, “Most of the customers refuse to accept 10-rupee coins. If we insist, they get into verbal spats with the staff.”

“The RBI has not withdrawn 10-rupee coins from circulation. They are still legal tender. We are trying to create awareness about this among the general public,” K Eshwar, lead bank manager told DH.