Rs 10 coin being rejected in pockets, though it is legal tender

The Re 10 coin is still valid tender but there seems to be all-round resistance to acceptance of the coin, particularly in this industrial hub. While none have a reason for non-acceptance of the Rs 10 coin, some have started believing that it is no longer valid tender. So, be warned... if you happen to board a city bus with just one Rs 10 coin in your purse, the conductor might show you the door at the next stop.

Such instances have started coming to the fore, though not in a big way yet. From roadside vendors to even beggars, people have started saying a polite “no” to the Rs 10 coin. The other day, a vendor told this correspondent to exchange the tender at the bank counter, while asking for a note instead.

And if you thought there is public resistance and go to the bank to exchange the coin, the situation, a cross-section of people say, “is no different." It is not that the banks don't accept the coin, but they have certain constraints, an industry insider said, pointing out that banks are flush with coins.

"There is pressure from the banking regulator, asking us to ensure that there is adequate flow of coins in circulation; while we are prepared to offload the Rs 10 coin, the customer prefers to take the note instead. Their reluctance is adding pressure to the chest. We are, therefore, constrained to accept only a certain number of coins each day and this number has piled up over time," a banker said, adding "this issue has been on for almost two years now."

Meanwhile, K Kathirmathiyon, Secretary, Coimbatore Consumer Cause avers that government departments can take the lead by accepting the Rs 10-denomination coin and instill confidence amongst the public about the legality of the tender.

"If, for instance, the ticket collector in the public transport system accepts the coin, it would go a long way in spreading awareness, instilling confidence. There is no shortage of the coin, it is reluctance in acceptance that is actually causing the problem," he said.

While most people accept the refusal without raising their voice, there have been instances of people taking up the issue with the higher authorities in the bank, and such issues have been quietly resolved. The problem in general - persists.