Tender coconut vendor M. Satyanarayana has been wondering about the sudden inflow of Rs. 10 coins for almost every transaction made. With many turning away when he insisted to pay currency notes rather than coins, he began to accept the coins and soon accumulated hundreds of them.
“This is the only period where we make considerable business of tender coconuts and I really do not want to lose customers. However, when I try to exchange the same with them, they simply turn down the change offered,” laments the vendor from S. Rayavaram.
Several hawkers, auto-rickshaw drivers, shopkeepers and small traders share similar experiences. Flower vendor Jagan says his collection of Rs. 10 coins for the past two months amounts over Rs. 8,000. “Customers consider us an easy prey to get rid of their coins on a daily basis. When we exchange the same with customers, they refuse to accept,” he says.
Even after Reserve Bank of India announcing that Rs. 10 coin continues to be a legal tender, a majority of people are reluctant to transact, exchanging coins. “We have been dismissing the apprehensions of the customers for quite a while as RBI has given clear instructions to accept Rs. 10 coins with or without rupee symbol as both are good for transactions,” says M. Srinivasa Rao, chief manager of State Bank of India.
Banks find themselves in a quandary as there are huge deposits of Rs.10 coins in the recent months. However, people are reluctant to accept the small denomination coins in exchange when banks make payments. As there are no possible takers, the branches of several commercial banks are in a fix as to how to disburse Rs. 10 coins piling up with them. “Approximately, we are collecting Rs. 10 coins of one lakh per day at the branch for the past few weeks,” says N. Nageswar Rao, head cashier of Andhra Bank, Marripalem branch.
The most difficult task for D. Raju, estate officer at Seethammadhara rythu bazaar, is educating farmers to accept Rs. 10 coins and convincing customers not to turn them down when the vendors exchange for a payment. “Sorting out the arguments between customers and vendors has become a daily feature at rythu bazaars. Despite creating awareness on the subject, a few customers continue to refuse to accept coins for payment. As a result, most of the farmers now have a large collection of coins and we are helping them in depositing in banks,” he he says.
