Mumbai, June 29 : The 25 paise coin, which has been fading out of the pocket change in the recent years because of low acceptability, will finally become history from tomorrow. The coin, along with those with lower denominations, will be demonetised or cease to be legal tender. Today was the last day to exchange such coins with banks or the Reserve Bank of India.
“Coins of denomination of 25 paise and below will cease to be legal tender from June 30, 2011. These will not be accepted for exchange at bank branches from July 1, 2011 onwards,” the RBI has said recently.
In December 2010, the Government had decided to withdraw the coins of denomination of 25 paise and below from circulation from June 30.
Even before price inflation killed the 25 paise coin, RBI had been receiving complaints regarding non-acceptance of the coin by shops, business establishments, utility services and even public sector organisations and government departments. The central bank, then, had to issue notice that the coin was in circulation and continue to be legal tender.
Coins of 1, 2, 3 and 5 paise denominations have already demonetised.
After independence, during the period of transition (1947-1950), India retained the monetary system and the currency and coinage of the earlier period. While Pakistan introduced a new series of coins in 1948 and notes in 1949, India brought out its distinctive coins on August 15, 1950.
The Frozen Series 1947-1950 represented the currency arrangements during the transition period up to the establishment of the Indian Republic. The Monetary System remained unchanged at One Rupee consisting of 192 pies. The Anna Series was introduced on August 15, 1950 and represented the first coinage of Republic India. The King's Portrait was replaced by the Lion Capital of the Ashoka Pillar, according to an RBI document.
In September 1955, the Indian Coinage Act was amended for the country to adopt a metric system for coinage. The rupee remained unchanged in value and nomenclature. It, however, was now divided into 100 ‘Paisa' instead of 16 Annas or 64 Pice. The 2.5 grams nickel 25 paise coin was born. The latest 25 paise coin, weighing 2.83 grams, was ferritic stainless steel.
As per the RBI, over a period of time, cost benefit considerations led to the gradual discontinuance of 1, 2 and 3 paise coins in the 1970s.
Stainless steel coinage of 10, 25 and 50 paise, was introduced in 1988 and of one rupee in 1992. PTI