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Coin distribution through agencies

Mumbai, Aug. 29: In an interesting move, the Reserve Bank of India (RBI) has invited applications from agencies for undertaking distribution of coins. These agencies will receive service charges from the central bank.

The central bank added that agencies such as public sector undertakings, co-operative banks, regional rural banks, reputed and national/regional social welfare organisations (preferably government aided) could approach the RBI to distribute coins to their clients/public.

The facility is being undertaken on an experimental basis.

According to the central bank, it will pay a service charge, of Rs 250 per coin bag collected from its counters. The agencies would, however, have to distribute coins to the public at face value without any charge/commission. Coins, it added, will be available in denominations of Rs 1, 2, 5 as also 25and 50 paise.

However, the selected agencies will have to abide by certain conditions. These include payment of full value of the coins while collecting them from the RBI’s counters.

The value of a 25 paise bag is Rs 1,250 while it stands at Rs 2,500 for a 50 paise bag. For a bag of Rs 5, it stands at Rs 10,000 and for Rs 2 it is Rs 5,000.

In a statement issued today, the RBI said that both the transport and security arrangements will have to be met by the agencies at their cost.

Initially, for the first six months, it plans to extend the facility on a “highly selective” basis, choosing agencies on the basis of their track record.

“Based on the performance of the banks/organisations in actual distribution of coins to the public, it may renew the facility after the initial period is over,” the RBI added, pointing out that it will have the right to cancel the facility at any time with one month’s notice.

Recently, in a bid to enable people to have easier access to coins, the Reserve Bank recently tied up with postal authorities in Mumbai for distribution of coins through post offices in Maharashtra and Goa and Himachal Pradesh Road Transport Corporation.

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