THE COINAGE ACT, 2011
[Act No. 11 of 2011]
[1st September, 2011]
An Act to consolidate the laws relating to coinage and the Mints, the protection of coinage and to provide for the prohibition of melting or destruction of coins and prohibit the making or the possession thereof for issue and for matters connected therewith or incidental thereto.
Be it enacted by Parliament in the Sixty-second Year of the Republic of India as follows:--
Chapter I PRELIMINARY
Section 1. Short title, extent and commencement
(1) This Act may be called the Coinage Act, 2011.
(2) It extends to the whole of India.
(3) It shall come into force on such 1date as the Central Government may, by notification in the Official Gazette, appoint.
|1. Effective from 28.03.2012 vide Notificaiton No. S.O.628(E) dated 28.02.2012.|
Section 2. Definitions
In this Act, unless the context otherwise requires,--
(a) "coin" means any coin which is made of any metal or any other material stamped by the Government or any other authority empowered by the Government in this behalf and which is a legal tender including commemorative coin and Government of India one rupee note.
Explanation.--For the removal of doubts, it is hereby clarified that a "coin" does not include the credit card, debit card, postal order and e-money issued by any bank, post office or financial institution;
(b) "commemorative coin" means any coin stamped by the Government or any other authority empowered by the Government in this behalf to commemorate any specific occasion or event and expressed in Indian currency;
(c) "deface" means any type of clipping, filing, stamping, or such other alteration of the surface or shape of a coin as is readily distinguishable from the effects of reasonable wear;
(d) "Government" means the Central Government;
(e) "issue" means to put a coin into circulation for use as money;
(f) "metal" means any metal, base metal, alloy, gold, silver or any other material which may be prescribed by the Government for the purpose of any coin;
(g) "Mint" means the Security Printing and Minting Corporation of India Limited formed and incorporated under the Companies Act, 1956 or any other organisation established by or under the authority of the Government to make a coin by stamping metal;
(h) "notification" means notification published in the Official Gazette;
(i) "per cent." means the percentage of metals prescribed for any coin;
(j) "prescribed" means prescribed by rules made under this Act;
(k) "remedy" means variation from the standard weight and fineness;
(l) "standard weight" means the weight prescribed for any coin.
Establishment of Mints
Chapter II ESTABLISHMENT OF MINTS
Section 3. Power to establish and abolish Mints
The Government may, by notification.--
(a) establish a Mint at any place which may be managed by it or by any other person, which may be authorised for this purpose:
Provided that the Mints established before the commencement of this Act shall be deemed to have been established by the Government under this section:
Provided further that where the Government is of the opinion that it is necessary or expedient in the public interest so to do, it may authorise the minting of coins by any organisation or Government of any foreign country, within or beyond the limits of India and acquire such coins either by way of import or otherwise for issue under its authority;
(b) abolish any Mint.
Chapter III COINAGE
Section 4. Denominations, dimensions, designs and composition of coins
Coins may be minted at the Mints or at any other place authorised under the proviso to section 3 of such denominations not higher than one thousand rupees and of such dimensions and designs and containing such metals or mixed metals of such composition or any other material as may be prescribed by the Government.
Section 5. Standard weight and remedy
The standard weight of the coin of any denomination, minted under the provisions of section 4, and the remedy allowed in making of such coins, shall be such as may be prescribed in this behalf by the Government from time to time.
Section 6. Coin when a legal tender
(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, 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.
Section 7. Decimal system of coinage
(1) The rupee shall be divided into one hundred units and any such unit may be designated by the Government, by notification, under such name as it thinks fit.
(2) All references in any enactment or in any notification, rule or order under any enactment or in any contract, deed or other instrument to any value expressed in annas, paisa and pies shall be construed as references to that value expressed in units referred to in sub-section (1) converted thereto at the rate of sixteen anna, sixty-four paise or one hundred and ninety-two pies to one hundred units referred to in sub-section (1).
(3) All references in any enactment or in any notification, rule or order under any enactment or in any contract, deed or other instrument to any value in naya paisa or naye paise shall be construed as references to that value expressed respectively in units referred to in sub-section (1).
Section 8. Power to call in coin
Notwithstanding anything contained in section 6, the Government may, by notification, call in with effect from such date as may be specified in the notification, any coin, of whatever date or denomination and on and from the date so specified, such coin shall cease to be a legal tender, save to such extent as may be specified in the notification.
Diminished, Defaced and Counterfeit Coins
Chapter IV DIMINISHED, DEFACED AND COUNTERFEIT COINS
Section 9. Power to certain persons to cut, diminished or defaced coins
(1) Where any coin which has been minted and issued by or under the authority of the Government is tendered to any person authorised by it to act under this section, and such person has reason to believe that the coin--
(a) has been diminished in weight so as to be more than such per cent, below standard weight as provided in section 5; or
(b) has been defaced, he shall, by himself or through another person, cut or break the coin.
(2) A person cutting or breaking coin under the provisions of clause (a) of sub-section (1) shall receive and pay for the coin at its face value.
(3) A person cutting or breaking coin under the provisions of clause (b) of sub-section (1) shall observe the following procedure, namely:--
(a) if such person has reason to believe, that the coin has been fraudulently defaced, he shall return the pieces to the person tendering the coin, who shall bear the loss caused by such cutting or breaking;
(b) if such person has reason to believe, that the coin has not been fraudulently defaced, he shall receive and pay for the coin at its face value.
Section 10. Power to certain persons to cut counterfeit coins
Where any coin minted or issued by or under the authority of the Government is tendered to any person authorised by the Government under section 9 and such person has reason to believe that the coin is counterfeit, he shall by himself or through another person cut or break the coin, and the tenderer shall bear the loss caused by such cutting or breaking.