The Reserve Bank of India prints currency notes as per the provisions of the Act, 1934, while coins in India are made as per the Coinage Act, 2011. The Coinage Act, 2011 is applicable throughout India including Jammu and Kashmir. This act provides what a person cannot do with Indian coins and what kind of punishment is there for refusing to take coins.

The Reserve Bank of India is the highest monetary authority of India. It is authorized to print notes ranging from Rs 2 to Rs 10,000. One rupee note is printed by the Ministry of Finance instead of RBI. But currency and coin circulation in the economy is done by RBI only.

Some Important Provisions of Coinage Act, 2011

1. This Act is applicable to the whole of India including the State of Jammu and Kashmir.

2. “Coinage” means any coin made of any “metal” from which permission to make coins has been given by the Central Government or any organization authorized by it.

3. Dhatu “means any metal, alloy gold, base metal, silver or any other material which has been recognized by the Central Government for coin making.

4. If a person refuses to take any coin (if the coin is in circulation) then an FIR can be lodged against him. Action will be taken against him under the Indian Currency Act and IPC. The complaint of the case can also be made to the Reserve Bank.

5. The Central Government can take help of any organization within the country or the government of any foreign country to make coins. Even coins can be made abroad and imported into India.

6. The weight of the coin is fixed under the provisions of Section 4 of the Coinage Act, 2011 but in any case, the face value of the coin should not be less than the value of the metal in the coin. Because if this happens, people will make more profit by melting the coin and selling its metal in the market. This is the reason that the government is reducing the size of the coin so that the value of the metal in them is less than the face value of the coin.

7. Coins issued under the authority conferred in Section 6 of the Coinage Act, 2011 shall be valid currency for payment provided that the coins are not defaced and their weight is not less than the prescribed weight.

How much amount can be paid by coins?

Under the provisions of Section 4 of the Coinage Act, 2011-

(a). If a coin is above one rupee, it can be paid up to 1000 rupees in this way, it is a legal offense to pay more in coins.  

(b). If a person wants to make a payment in 50 paise coins, he can pay only up to 10 rupees.

(c). In coins of less than 50 paise, only one rupee can be paid. However, coins worth less than 50 paise are no longer valid. Coins of 1 paise, 2 paise, 3 paise, 5 paise, 10 paise, 20 paise and 25 paise denominations have been withdrawn from circulation since 30 June 2011, so they are no longer a valid currency.

9. Under the provisions of clause (a) of section 5 of the Coinage Act, 2011, if a person cuts or breaks a coin, he will be liable to pay a fine of equal value of the same coin.

10. Section 9 of the Coinage Act 2011 provides that if any person authorized by the Government feels that he has been given a counterfeit coin by some person, then that person has the right to destroy that coin and the loss in it The coin will belong to the holder.

11. No person shall use any metal piece (whether it is metal printed or non-printed) as a coin.

12. No person shall melt or destroy any coin.

13. No person shall make any other use of the coin except through the medium of exchange.

14. No person shall have a coin in molten or solid state.

15. No person has the right to keep the coin in the mutilated or fragmented form.

16. No person is allowed to keep more coins than he needs. With this, no person can sell coins for more than their face value.

17.  Coins cannot be used to melt and make any other object. According to reports- Indian coins are smuggled into Bangladesh and blades and other fake jewelry are made there.

18. After the implementation of the Coinage Act, 2011; The following laws have been repealed by the government-(a) The Metal Tokens Act, 1889

(b) Coinage Act, 1906 (

(c) Bronze Coinage (Legal Tender) Act, 1918

(d) Currency Ordinance, 1940

(e) The Small Coins (Offenses) Act, 1971

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