THIRUVANANTHAPURAM: The RBI Office at Bakery Junction is witnessing a huge rush of people wanting to get rid of 25 paise coins which will go out of circulation from June 30. The rush to exchange the bindi-sized silver coins for legal tender is so huge that senior RBI officials are uncertain whether all the 25 paise, and lower denomination coins like five and ten and twenty paise, out in the open could be mopped up before the deadline of June 29. The reluctance of certain banks maintaining small coin accounts to arrange for the exchange of coins had further strained collection efforts.From June 30 onwards, 25 paise will cease to be legal tender. The RBI had issued a press release to the effect early in February, but the rush in the RBI office began only by June. Right form the start of the month, over 200 people queue up daily before the two counters set up on the premises of the RBI office specifically for the purpose. "Seeing the rush, it seems the last day of June 29 will not be enough to absorb all the 25 paise and other lower denomination coins,’’ an RBI official said.The RBI had also listed 19 banks where people could get the coins exchanged. However, most of these banks have not made any arrangements causing huge, uncontrollable rush in front of the RBI. Shortage of staff is the main reason. Collection of 25 paise and other lower-denomination coins involve a complicated and elaborate process of sorting. There are coins made from different materials and from different decades. The earlier coins are made of aluminium. The latest 25 paise coins are made of steel. These need to be sorted and separated."Though people come to exchange coins worth as little as Rs 10, there is a large number coming with collections worth more than Rs 5,000. Their cache will consist of coins from the 1970s to the latest ones. Separating them is hard work. And all this while people will be waiting,’’ the RBI official said. The heavy lots come mainly from religious institutions whose ‘hundis’ are filled with coins and also small-time traders."Some of them would not have opened their collection of coins for years. So you can imagine the dust that is released when the lot is opened. It is not easy for the people sorting the coins,’’ the RBI official said.The least that the RBI is willing to exchange is a collection of four 25 paise coins. "But if you have only three 25 paise coins, we can give you a 50 paise and return the 25 paise back to you,’’ the RBI official said. The sorted coins have to be collected in sacks of Rs 500 each and despatched to mints in Hyderabad and Delhi.25 paise had been causing trouble for over half-a-decade. The central bank had been receiving complaints from members of the public regarding non-acceptance of 25 paise coins by shops, business establishments, utility services and even public sector organisations/government departments since way back in 2005. Even at that time, there was a general impression in commercial and trading circles that 25 paise coins have ceased to be valid and are no longer in circulation. However, the RBI had then stood rock solid behind the quarter paise, saying it continued to be legal tender.It was exercising the powers conferred by Section15A of the Coinage Act, 1906, that the Centre had decided to withdraw the 25 paise coins and those of lower denominations with effect from June 30.
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