Come June 30, 50 paise will be the minimum coin accepted in the markets as all denominations below it will cease to be legal currency.
“From this date, these coins (denomination of 25 paise and below) shall cease to be a legal tender for payment as well as on account,” the Finance Ministry said in a statement on Thursday.
It further said that the minimum denomination coin acceptable for transaction will be 50 paise from that date.
Also, the entries in books of accounts, pricing of products, services and taxes should be rounded off to 50 paise or whole rupee from that date.
“The procedure for call in shall be notified separately by the Reserve Bank of India,” it added.
The reason behind taking such a decision is that manufacturing currency coins in their current shape and size required good amount of money and that is on the rise given the fact that the steel prices are on the upmove.