The
Chairman and Managing Director/
Chief
Executive Officer
All
Banks
Madam/Dear
Sir,
Acceptance
of Small Denomination Notes and Coins
A
case involving refusal by a bank to accept demand draft involving fraction of
a rupee came up before the Honourable High Court of Gujarat, Ahmedabad. The High
Court of Gujarat, taking a serious view of the matter, has directed that appropriate
steps may be taken in the matter as also regarding non-acceptance of small denomination
notes / coins by banks in accordance with law, in the light of the extant instructions
and, if required, issue fresh notifications to all the banks.
2.
You are, therefore, advised to ensure that none of your bank branches/staff refuse
to accept lower denomination notes and / or coins. You may issue strict instructions
to all branches that the staff concerned should in no case refuse to accept small
denomination notes and coins tendered at the counters. It may also be ensured
that all the staff members are made fully conversant with the instructions in
this regard and also comply strictly with the same. Stern action will be taken
in the event of refusal / non-compliance by any staff member.
3.
Please acknowledge receipt.
Yours
faithfully,
(U.S.
Paliwal)
Chief General
Manager