The Hindu Business Line : Coin surplus

This is with reference to "Coin surplus leaves TN traders at wits end — Reluctant banks add to their woes" (Business Line, February 16) blaming the bankers for not accepting the coins, though it is a legal tender.

There is no different view being held by the bankers that coins are legal tenders and as such cannot be refused. It is a question of practical difficulty for the bankers to accept coins. They have to be counted on the spot by the cashier, which may take a bit of more time than the notes, for which many banks have installed note-counting machine.

The coin problem is due to lopsided demand and supply. While one centre or region may be surplus, another in a remote area may be short. It is difficult for a bank branch or even its currency chest to bridge the gap or set right the imbalance. The Reserve Bank of India may be in a better position to regulate the supply of coins by taking stock of the demand-supply position in each State.

S. Ravindranath

Nagpur

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