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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