Organisation of coin distribution

Difficulties in the distribution of new 1, 2 and 5 Rupees coins could perhaps be blamed upon the fact that the main channel of distribution is just the RBI, through its branches and mobile outlets. The other banks take no responsibility for the distribution of coinage as they realise what a great undertaking this would be. This means that there is a place in society for money changers, who can actually charge up to 10% for changing soiled notes for coins. Also places such as restaurants are used by the public as means of getting useful quantities of change. Numerous local associations of hotel owners carefully organise great distribution of coins through their very many members. The quantities of coins involved with this run into hundreds of thousands in some larger cities. The general idea of this is that soiled notes will be swapped for new coins. The provision, in larger cities, of extra help in the distribution of coins, has, over the last couple of years or so, been organised by a few voluntary organisations in conjunction with the RBI. These soiled note exchange sessions are a weekly event taking place at selected regular venues. The idea with this is that the public can exchange soiled 1, 2 and 5 Rupee notes up to a value of 800 Rupees for new coins of these denominations. The maximum 800 Rupees, for this, is paid out in 100 pieces of each 1, 2 and 5 Rupees. Additionally the distribution of quantities of 25 and 50 Paise coins also takes place during these sessions.
 


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