Reserve bank of India is the highest monetary authority of India. It is authorised to print currency notes from 2 rupees to 10000 rupees. The note of one rupee is printed by the Ministry of Finance instead of RBI. But the circulation of currency and coins is done by RBI only.
RBI prints the currency notes as per the provisions of the Reserve Bank of India Act, 1934 while the coins in India are minted as per The Coinage Act, 2011.
In this article we are publishing some crucial provisions of The Coinage Act, 2011;
1. This Act is applicable on whole India including the J & K state.
2. "Coin" means any coin which is made of any metal or any other material stamped by the Government or any other authority empowered by the Central Government.
3. Metal" means any metal, alloy gold, base metal, silver or any other material which may be prescribed by the Central Government for the purpose of any coin.
4. Central Government may authorise the minting of coins by any organisation or Government of any foreign country even outside the boundary of India.
5. The standard weight of the coin of any denomination, is decided under the provisions of section 4 of Coinage Act, 2011. But need to mention that the Metallic value of coin should not be more than the face value of coins otherwise the black marketers and goldsmiths can mint the coin.
6. Coin as Legal Tender;
The coins issued under the authority of section 4 shall be a legal tender in payment, in case of;
(a). A coin of any denomination not lower than one rupee, for any sum not exceeding one thousand rupees;
(b). A half-rupee coin, for any sum not exceeding ten rupees;
(c). any other coin, for any sum not exceeding one rupee:
7. A person cutting or breaking coin under the provisions of clause (a) of section (5) shall pay for the coin equal to its face value.
8. Section 9 of the Coinage Act-2011 says that, if any person authorised by the Government believe that the coin is counterfeit, he shall by himself or through another person cut or break the coin, and the tenderer (the bearer) shall bear the loss caused by such cutting or breaking.
9. No person shall use any metal piece as coin (whether stamped or unstamped) intended to be used as money.
10. No person shall melt or destroy any coin.
11. No person shall use coin other than as a medium of exchange.
12. No person shall possess any melted coin, whether in the molten state or in a solid state.
13. No person shall possess any coin in a destroyed or mutilated state.
14. No person shall possess coins substantially in excess of his reasonable requirements for the purpose of selling such coins for value other thantheir face value or melting for purposes other than medium of exchange. Like Indian coins were smuggled to Bangladesh to make blades and Jewellery.
15. No person shall bring any piece of metal to be used as coin into India by sea or by land or by air without the permission of the Government.
After the implementation of the Coinage Act, 2011; these acts have been repealed by the government;
(a). The Metal Tokens Act, 1889
(b). The Coinage Act, 1906
(c). The Bronze Coin (Legal Tender) Act, 1918
(d). The Currency Ordinance, 1940
(e). The Small Coins (Offences) Act, 1971
From the above mentioned 15 points it can be said that the enactment of the Coinage Act,2011 have given us a broad idea about Dos and Don'ts related to coins in the circulation.