Recently, social media and messaging platforms have been flooded with claims that 50 paise and 1 rupee coins have been discontinued in India. This news created confusion among shopkeepers, customers, and daily wage workers who still use these coins for small transactions. To address the growing concern, the Reserve Bank of India has issued a clear clarification.
What Sparked the Rumours
The confusion began due to reduced circulation of small-denomination coins in many regions. As digital payments increased and inflation rose, these coins became less commonly used, leading many people to assume that they were officially withdrawn. Viral posts further amplified the misinformation.
RBI’s Official Clarification
The Reserve Bank of India has categorically stated that 50 paise and 1 rupee coins have not been discontinued. These coins continue to be legal tender across the country. This means they can still be used for transactions, and no one has the right to refuse them solely based on denomination.
Why These Coins Are Rarely Seen
While the coins are legal, their usage has declined significantly. Rising prices have reduced their purchasing power, and many people prefer digital payments or rounded-off cash transactions. As a result, fewer coins are actively circulated, but this does not mean they are invalid.
Are Shops Allowed to Refuse These Coins
Legally, merchants and service providers should accept valid coins issued by the RBI. However, in practice, many shops hesitate due to inconvenience or lack of change. RBI has clarified that refusal based purely on denomination is not justified.
RBI’s Stand on Coin Circulation
RBI continues to mint coins based on demand and economic feasibility. While priority is given to higher denominations that are used more frequently, smaller coins remain part of India’s monetary system and have not been withdrawn.
What Citizens Should Know
Citizens holding 50 paise or 1 rupee coins do not need to exchange or discard them. These coins can still be used for payments or deposited at banks. There is no deadline or instruction from RBI regarding their withdrawal.
Conclusion
The news about discontinuation of 50 paise and 1 rupee coins is completely false. RBI has made it clear that these coins remain valid legal tender. Although their usage has declined, they are still recognized under Indian law. Citizens are advised not to believe rumours and rely only on official announcements.