No takers for "Paisa" Guwahati, Nov 16

Coins of lower denomination are fast becoming passé in the Northeastern state of Meghalaya.
While the bankers attribute the growing aversion of the people towards the coins as the probable reason for the passe, the administrators in the state cited the non-availability of the small denomination coins like that of 50 paise, one rupee and two rupees as the cause for the passé of the coins in the state. To help the coins regain its pristine glory, the Reserve Bank of India (RBI) is planning to set up four coin dispensation machines in different locations of capital city of Shillong.

RBI governor, Dr Y V Reddy visited the Meghalaya capital recently and held discussion with bank
officials to assess ground realities. He expressed surprise that in rest of the country people had no
hesitation to exchange coins while in Meghalaya concept of small coins were almost passe.

The matter also emerged during Dr Reddy's meeting with state Urban Affairs Minister, Friday Lyngdoh and other top state government officials. "Coin dispensation machines would be set up so that the people could get into the habit of accepting and circulating small coins. Coin dispensation machines would be of great help for the common man and the RBI would invest in installing dispensation machines in different branches of banks, at hotels and other institutions," he said.

An official of RBI in Guwahati said that there is no dearth of coin with the RBI. "We have stable demand for coin in Assam, Tripura has a high demand for one rupee coins and there are sometimes shortage of one rupee coin in Tripura. The demand of small denomination coins is very less in Meghalaya. Even the demand for coins above one rupee are not very encouraging," he said.

Principal secretary, Finance of Meghalaya government, B.K Deb said that people are willing to use coins provided they are adequate flow of the same in the market. "There is no aversion among the people on the usage of coins. We have taken up the issue with the RBI governor and he assured that actions will be initiated," he said. Sources in Meghalaya finance department said that in view of the insufficient flow of lower denomination coins, customers purchasing from the retail outlets have to adjust their money for a piece of candy." If the monetary value does not come in round figures, the shopkeeper has to adjust the same by giving chocolates or keeping the balance amount with assurance that it will be adjusted in future," he said.

Date: Nov 16, 2005