Despite assurances, confusion over 10 rupee coin continues

It is not only the public who are on the receiving end over the perceived uncertainty over Rs 10 coin. In the latest incident, the conductor of a government bus asked a tahsildar to disembark from a government bus after he gave two Rs 10 coins for his fare, in Kancheepuram. Finally, it took a sympathetic fellow passenger to bail him out by tendering money for his ticket.

V Saravanan, tahsildar of Thirukazhukundram, was travelling from Kancheepuram to Chengalpattu on a State-run bus on Monday afternoon when he handed over two Rs 10 coins and a Rs 5 coin to pay for the ticket. But the bus conductor refused to accept the Rs 10 coins, claiming that there was an internal order in this regard.

“I was shocked when the conductor asked me to get down from the bus for giving two Rs 10 coins. I had given him two Rs 10 coins and one Rs.5 coin for the fare of Rs 25 when I was travelling from Kancheepuram to Chengalpattu,” Saravanan told DT Next. Saravanan said he had not disclosed his official position to the conductor of the bus (route number 212 B, registration number TN 21 1575), when the issue of non-acceptance of the coin popped up.  There was no point because the conductor was telling everybody that he cannot accept more than one Rs 10 coin from a passenger, Saravanan added. The conductor even claimed that there was an internal order in Tamil Nadu State Transport Corporation because too many coins can fill up the bag that conductors carry. 

However, when this newspaper contacted the Kancheepuram office of the TNSTC, one official said that was no such internal order issued asking the conductors not to accept more than one Rs 10 coin from one passenger. “If any conductor insists on such a thing, passengers can write to the TNSTC manager’s office located on Ponnerikarai on Chennai – Bengaluru highway in Kancheepuram,” the official said.

It may be noted that rumours about Rs 10 coin had put many members of public in a spot after a spate of rumours about its validity began circulating in social media. These ranged from the hoax that Rs 10 coins were being counterfeited and even that they would soon be withdrawn from circulation – like how demonetisation took away Rs 500 and Rs 1,000. Perhaps due to the shock over demonetisation, even repeated clarifications by the Reserve Bank of India have not helped build confidence among the masses. 

Banks were refusing to accept Rs 10 coins citing lack of storage facilities, which has put them in a difficult position, alleged traders in Vellore. While some banks were willing to accept them if the numbers were small, there are a few officials who would help only if a hefty commission was paid, they added.

Small retailers use the Rs 10 coins given by consumers to pay wholesalers, who in turn hand them over to distributors and manufacturers, explained SA Ponnusamy, president, TN Milk Agents and Employees Welfare Association. “The problem starts when banks refuse to accept coins citing lack of storage facilities and lack of time to count them, resulting in manufacturers and distributors saying no to coins. The cascading effect results in retailers being forced to hoard quite a large sum of coins. Hence, we have no alternative other than to refuse them from customers.”

Ponnusamy alleged that some banks in Chennai accepted coins, if the cashiers were tipped 10-20 per cent of the transaction. 

When contacted, an RBI official in Chennai said action would be taken if complaints were lodged, with details. Recalling how RBI minted Rs 10 coins to overcome currency shortage, he added: “Contrary to the situation a year ago when RBI restricted change to less than Rs 100, we now have plenty with the major recipients being transport corporations specially MTC, Chennai.”

“Banks have been repeatedly told through circulars that they should accept Rs 10 coins. Problems could result if coins amounting to more than Rs 1,000 are given in one instalment, as the coinage chart suggests only this amount per day,” added RBI AGM (issue) Uma Maheswari.