RBI coins not accepted in 9 MP districts:Bhaskar sting finds shopkeepers, banks refusing them; ₹1 shagun tradition fades

Shopkeepers across nine districts of Vindhya region in Madhya Pradesh — Rewa, Sidhi, Satna, Shahdol, Singrauli, Umaria, Mauganj, Maihar and Anuppur — are refusing to accept coins issued by the Reserve Bank of India (RBI). The situation has continued for nearly five years, effectively pushing coins out of day-to-day economic transactions. The message is clear — in these nine districts, RBI’s rules are not being followed; instead, shopkeepers are running their own currency system. The administration, too, has been unable to rein them in. As no shopkeeper openly explains why coins are being rejected, a Bhaskar reporter conducted a sting operation. Posing as an ordinary customer, the reporter visited several shops and tried making payments using coins to uncover the ground reality. Priests and pandits also refused The Bhaskar reporter visited petrol pumps, medical stores, dairies, fruit stalls, juice shops and grocery stores, attempting to pay with coins after making purchases. At almost every place, the response was nearly identical — “We do not accept coins.” Even priests and religious figures showed no interest in taking coins. Shopkeepers said that while customers hand over coins, nobody accepts them further down the chain, leaving their money stuck. They also claimed that banks hesitate to accept large quantities of coins, making matters worse. Ground reality of coins checked at 7 places Took notes at petrol pump, returned coin The reporter first visited an Indian Oil petrol pump on University Sirmour Road, where ₹310 worth of fuel was filled in the vehicle. The reporter handed over ₹300 in notes and one ₹10 coin. The petrol pump employee accepted the notes but refused to take the coin, saying, “Brother, please don’t give coins.” When asked why, he replied that this has been the practice for years. Even after repeated attempts, he did not accept the coin. In the end, the reporter had to pay with a ₹10 note instead. Traders not accepting coins since Corona The reporter then went to a dairy shop in Anantpur and bought curd. When coins were offered as payment, the shopkeeper flatly refused. He said coins have not been accepted here since the Covid period. During the conversation, he blamed larger traders, saying: “If they do not take coins, why should we?” From there, the reporter visited a fruit and juice shop in Bajrang Nagar, where two glasses of mango juice were bought for ₹40. The reporter paid ₹30 in notes and offered the remaining ₹10 in coins. The shopkeeper looked surprised and said, “Brother, coins do not work here.” When asked why, he gave no clear answer, only saying: “Not just me — nobody here accepts coins.” Grocery store operator said – coins are useless The reporter then visited a grocery store on KK Market Road, bought fasting rock salt worth ₹60, and later tried to buy toffees using coins. The shop owner refused immediately and said: “Brother, don’t even take out coins. They are of no use.” When asked the reason, he simply said: “This has been the situation for years.” Medical store operator said – I myself go out and use them The reporter then visited two medical stores in an attempt to use coins. At a medical store near Sirmour Square, the reporter bought Vicks tablets, but the shopkeeper refused to accept coins, saying: “Coins simply do not work. I myself go outside and somehow get them circulated.” At another medical store near Life Care Hospital, the reporter bought Eno and headache medicine. Here too, the shopkeeper smiled and said: “Brother, coins will not work. They stopped during Covid.” When asked why, he replied: “People do not take them, so I also stopped accepting them.” Delivery boy also didn’t take coins As part of the sting operation, the reporter placed a food order. When the delivery boy arrived, the reporter tried to make part payment in coins. The moment he saw the coins, he immediately refused and said: Sir, I cannot take coins. It becomes difficult to deposit them with the company. Nobody accepts them there either. Even if I take them, I face trouble later. So now I refuse directly. Auto driver said- Coins are difficult to circulate To understand the issue further, the reporter travelled by auto from Sirmour Square to the New Bus Stand. At the time of payment, the reporter offered coins, but the auto driver refused, saying: “Brother, what will I do with coins? Nobody accepts them.” He explained that if coins pile up during the day, it becomes very difficult to use them later. He said drivers are forced either to search for small shopkeepers who might accept them or insist on payment in notes. Eventually, the reporter had to pay in notes. Pandit says – Shagun tradition is gradually ending Pandit Rajesh Shastri said that ₹1 coins once held special significance in auspicious rituals as shagun, but now people prefer to give the full amount in notes. He said this old tradition is slowly disappearing. Kiosk operator said- Bank refuses to accept A kiosk operator said many customers bring coins, but banks do not accept them easily. He said when large quantities of coins are taken to banks, people have to stand in queues for hours, and at times they are sent back without depositing them. Because of this, shopkeepers are now forced to refuse coins. He added that if banks create a simpler system for accepting coins, there would be no issue in taking them. People said- Circulating coins in the market has become a problem Local resident Amit Tiwari said carrying coins to the market has become a problem because shopkeepers refuse them outright, causing embarrassment. He said that many times people only have coins for small purchases, yet nobody accepts them, forcing them to carry notes. He added: “If the government has issued coins, they should be accepted everywhere.” Another resident, Ramlal Kol, said people coming from villages to cities face the biggest trouble over coins. He said even for small purchases or paying auto fare, people refuse to accept coins. Bank employees say – counting takes time An Axis Bank employee, speaking on condition of anonymity, admitted that there is a ground-level problem regarding coins. He said depositing coins is a time-consuming process, especially in large quantities, as they require separate counting and management. He added that many branches do not have enough staff or resources, so employees often show little interest in handling coins. He said that if a proper collection and deposit system is created, the problem can be largely solved. Refusing to accept coins is legally a crime According to RBI rules, refusing to accept valid Indian coins (1, 2, 5, 10, 20 rupees) is legally a crime. Refusing to accept coins can lead to a complaint under Section 124-A of the Indian Penal Code (IPC) for sedition or under other sections. All banks and shopkeepers are obligated to accept them.