Do you know! Rs 50 paise coin is still a legal tender

Strange but true.The 50 paise coin is still legal tender, but could be close to extinction given that people refuse to accept it.RBI never gave any official notification regarding the discontinuation of the 50 paise coin.An RBI official said that it is expensive to manufacture smaller denomination coins now. "Besides, the usage is not much anymore," he added. Although the government has slowed down fresh minting of the coin for some years, "50 paise coins continue to be legal tender". RBI offices continue to accept coins for exchange into bank notes.

Do you know! Rs 50 paise coin is still a legal tender Before any coin is withdrawn from circulation the government issues a notification under sub-section 15A of the Coinage Act, 1906 announcing the date from which the coin would cease to be legal tender.In case of the 25 paise coin,popularly known as 'Chaar Anna',the central bank issued a notification in December 2010 but there was no notification regarding the discontinuation of the 50 paise coin.Reluctance on the part of anyone to accept the coins, is, therefore, not correct.Bankers say that coins usually go out of circulation when the intrinsic value that is the value of metal in the coin exceeds the face value.

A spokesperson for the Mumbai bus transport undertaking, BEST, said its conductors accept 50 paise coins since they cannot refuse a legal tender. But passengers decline to take them.

History of 'Chaar Anna'
Prior to 1957, Indian rupee was not decimalised and the rupee from 1835 to 1957 AD was further divided into 16 annas. Each anna was further divided to four Indian pices and each pice into three Indian pies till 1947 when the pie was demonetized. In 1955, India amended the "Indian Coinage Act" to adopt the metric system for coinage. Paisa coins were introduced in 1957, but from 1957 to 1964 the coin was called "Naya Paisa" (New Paisa). On 1 June 1964, the term "Naya" was dropped and the denomination was simply called "One paisa". Paisa coins were issued as a part of "The Decimal Series".
Do you know! Rs 50 paise coin is still a legal tender Do you know! Rs 50 paise coin is still a legal tender Reviewed by Saurabh Jadhav on May 07, 2018 Rating: 5
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