25 paise coins can't be used after June 30

MUMBAI: Come June 30, coins of denomination of 25 paise or less cannot be used for any payment, nor will they be accepted by banks.

On Wednesday, the Reserve Bank of India (RBI) said that the government had decided to withdraw these coins from circulation with effect from June 30. "Coins of denomination of 25 paise and less will cease to be legal tender from June 30, 2011," an RBI release said.

The RBI has asked the public to exchange these coins at the branches of banks maintaining small coin depots or at its own offices. The central bank has directed all the public and private sector banks as well as some select foreign, grameen and cooperative banks to facilitate the exchange of these coins till June 29. "The RBI has instructed the banks maintaining small coin depots to arrange for exchange of coins of denomination of 25 paise and less for their face value at their branches," the release said.

Once the banks collect all the old coins of 25 paise and less, the central bank is expected to melt them. The government would then decide what to do with the metal so extracted.