RBI getting many complaints of banks not accepting coins
NEW DELHI: The government on Tuesday said there have been complaints against banks that they do not accept coins for transactions at their branches.
"The Reserve Bank of India (RBI) has informed that it has been receiving general complaints from the public against banks for non-accepting coins," Minister of State for Finance Shiv Pratap Shukla said in a written reply in the Rajya Sabha.
However, there are no specific complaints that have been received against any bank, the minister added.
Also, the RBI has already advised the banks to accept coins for transactions and exchange at all their branches.
Shukla further said that the RBI'S regional offices (ROS) have been instructed to advise controllers of banks in their jurisdiction to accept coins at all their branches.
RBI'S ROS have also been advised to open counters to accept coins from public, he said.
In a separate reply to a related question, another Minister of State for Finance Pon Radhakrishnan said the legal tender validity of coins are defined under section 6 of the Indian Coinage Act, 2011 and the RBI has advised the public to continue to accept the rupees 10 coins as legal tender in all their transactions without any hesitation.
The minister was responding to a query why even after more than a year after demonetisation, public sector banks were still refusing to accept coins and what actions government took on clarifying on legal validity of coins. NEW DELHI: A bill aimed at reducing inordinate delays in cases of cheque dishonour and payment of interim compensation to the complainants was tabled in the Lok Sabha on Tuesday.
The Negotiable Instruments (Amendment) Bill, 2017, which was introduced by Minister of State Finance Shiv Prasad on behalf of Finance Minister Arun Jaitley, also seeks do away with "unnecessary" litigation in cheque dishonour cases.
The new provisions will allow the concerned courts to order the drawer of the cheque to pay interim compensation to the complainant, in a summary trial or a summons case where he or she pleads not guilty to the accusations upon framing of charges, according to the bill which amends the Negotiable Instruments Act, 1881.
The interim compensation so payable shall be such a sum not exceeding 20 per cent of the amount of the cheque.
If the drawer is acquitted, the court may direct the payee to repay the amount paid as interim compensation with interest, the bill says.
Last month, the cabinet had approved the amendment to the current law with an aim not to allow unscrupulous elements holding payments, pending long trial.
"The government has been receiving several representations from the public including the trading community relating to pendency of cheque dishonour cases. This is because of delaying tactics of unscrupulous drawers of dishonoured cheques due to easy filing of appeals and obtaining stay on proceedings," the Statement of Objects and Reasons of the bill said.
As a result of this, it said, injustice is caused to payee of a dishonoured cheque who has to spend considerable time and resources in court proceedings to realise the value of the cheque.
"Such delays compromise the sanctity of cheque transactions," the statement said while elaborating on the proposed amendments.
Dishonour of cheques due to inadequate funds in the account of the drawer or for other reasons causes lot of distress in the trade, business and MSME sectors.
The RBI has already advised banks to accept coins for transactions and exchange at all their branches