Section 6 of The Coinage Act, 2011
- (1)The coins issued under the authority of section 4 shall be a legal tender in payment or on account, in case of--
- (a)a coin of any denomination not lower than one rupee, for any sum not exceeding one thousand rupees;
- (b)a half-rupee coin, for any sum not exceeding ten rupees;
- (c)any other coin, for any sum not exceeding one rupee: Provided that the coin has not been defaced and has not lost weight so as to be less than such weight as may be prescribed in its case.
- (2)All new coins in the naya paisa series, designated as such under the notification of the Government of India in the Ministry of Finance, Department of Economic Affairs, Number S.R.O. 1120, dated the 11th May, 1956 issued prior to the commencement of the Indian Coinage (Amendment) Act, 1964 (17 of 1964), shall continue to be a legal tender in payment or on account, in case of,--
- (a)a half-rupee or fifty naye paise coin, for any sum not exceeding ten rupees;
- (b)any other coin, for any sum not exceeding one rupee.
Summary
- Coins of one rupee or higher are legal tender for payments up to a maximum limit of one thousand rupees.
- Half-rupee (fifty paise) coins are legal tender for payments up to ten rupees.
- Any other smaller coins are legal tender for payments up to one rupee.
- To remain legal tender, a coin must not be defaced or lose too much weight below the government's prescribed limit.
- Older coins from the naya paisa series continue to be legal tender with the same payment limits of ten rupees for fifty paise, and one rupee for smaller coins.
Practical examples
FAQ
1. What is the maximum amount I can pay using one-rupee coins?
You can pay a sum of up to one thousand rupees using one-rupee coins or any higher denominations.
2. Can a shopkeeper refuse to accept a payment of fifty rupees made entirely of fifty-paise coins?
Yes, because a half-rupee (fifty-paise) coin is only legal tender for payments up to ten rupees.
3. Does a coin remain legal tender if it has been filed down or stamped with a personal mark?
No, a coin ceases to be legal tender if it has been defaced or if it has lost weight below the legally prescribed limit.
4. Are older naya paisa coins still considered legal tender under this Act?
Yes, new coins in the naya paisa series issued prior to the 1964 amendment remain legal tender, subject to the ten-rupee limit for fifty naye paise and one rupee limit for other smaller coins.
Test yourself
Q1.Under Section 6 of The Coinage Act, 2011, what is the maximum amount for which a coin of denomination not lower than one rupee is considered legal tender?
Q2.Under Section 6 of The Coinage Act, 2011, up to what maximum amount is a half-rupee coin legal tender?
Q3.Under Section 6 of The Coinage Act, 2011, what is the legal tender limit for coins other than those of one rupee or higher and half-rupee coins?
Q4.Under Section 6 of The Coinage Act, 2011, which two conditions can prevent a coin from being accepted as legal tender?
Q5.Under Section 6 of The Coinage Act, 2011, how are coins issued under Section 4 affected if their weight falls below the limit prescribed under Section 5?