Monday Musing
[ M Doley ]
It is frustrating when shopkeepers refuse to accept coins as payment, despite coins being legal tender.
In Arunachal Pradesh, particularly in the capital region, most shopkeepers and vendors refuse to accept coins, particularly the Rs 10 denomination, stating that customers don’t accept them either.
I recently had an argument with a shopkeeper, who refused to accept coins without a valid reason. Even after I reminded him that coins are legal tender and he is obligated to accept them, he remained adamant. The shopkeeper told me that he used to accept coins but now has a tin full of them that no one will take.
This may be due to the persistent rumour that Rs 10 coins are counterfeit and not legally valid. Despite repeated clarifications from the Reserve Bank of India, this misconception persists.
The peo-ple here are compelled to buy small but essential items, like matchboxes, in bulk, even though they typically cost only Re 1 or Rs 2 per piece, simply because shopkeepers refuse to accept coins.
On the other hand, the shopkeepers offer toffees, dishwashing bars, matchboxes, etc, instead of returning coins. This unhealthy trend might make no difference to wealthy people, but for many, particularly low-income individuals, every coin counts, no matter how small they are.
Coins, especially of smaller denominations, are often seen as having little value. It is essential to recognise the value of these small but significant pieces of currency, which play a crucial role in our daily financial transactions.
Refusing to accept coins as a mode of payment goes against the Coinage Act. It may attract penalties, even cancellation of licence or permit. The consumer can take legal action or report it to the RBI against individuals, shops, or establishments who refuse to accept them.
It is essential to address this issue and educate the shopkeepers and customers alike about the legitimacy of coins as a mode of payment.
The authorities and the bazaar committees may organise financial literacy programmes to address the concerns of the shopkeepers, and to promote the acceptance of coins.