RBI Update : Are you facing difficulties using ₹10, ₹20, and ₹50 notes at shops, toll booths, or vending machines? You’re not alone. Many people across India have recently raised concerns about small denomination currency notes being rejected. In response, the Reserve Bank of India (RBI) has issued an important clarification addressing these issues and warning individuals and organizations that refuse to accept legal tender.
Let’s break down everything you need to know about this situation, including RBI’s official stance, reasons behind the rejection, and what you can do if your notes are turned away.
RBI Update : Why Are ₹10, ₹20, and ₹50 Notes Being Rejected?
In many cities and towns, people have reported that:
- Local vendors are refusing old design ₹10 and ₹20 notes
- Toll plazas are not accepting lower denomination notes
- Some vending machines reject these notes entirely
- Auto drivers and bus conductors claim the notes are “no longer valid”
- Confusion exists due to multiple versions of the same denomination
These rejections have caused frustration among citizens who carry smaller notes for everyday expenses. But are these notes actually invalid?
RBI’s Official Statement on ₹10, ₹20 & ₹50 Notes
The Reserve Bank of India has made it clear that:
- All currency notes issued by RBI—regardless of their design—are legal tender
- No one can legally refuse to accept ₹10, ₹20, or ₹50 notes
- The RBI continues to issue and circulate both old and new series notes
- Rejecting valid currency is punishable under the law
Here’s what the RBI clarified in its recent circular:
- There is no withdrawal of old ₹10, ₹20, and ₹50 currency notes
- Old design notes and coins remain valid
- Businesses and government services must accept them without discrimination
Legal Tender Explained – What It Means for You
When RBI calls a note “legal tender,” it means:
- It is a legally valid mode of payment for goods and services
- Every entity—private or public—must accept it without exception
- Refusing legal tender is a violation of RBI guidelines and can attract penalties
Whether you’re using the Mahatma Gandhi series or the newer design notes, they are all valid in the eyes of the RBI.
Reasons Behind the Confusion
Despite clear instructions from RBI, the public often faces issues due to:
- Misinformation spread on social media platforms
- Unawareness among small traders and vendors
- Vending machines and toll booths not being updated to accept older notes
- People assuming that old designs are “discontinued” if they see new versions in circulation
This confusion is especially common in semi-urban and rural areas where awareness campaigns may not have reached effectively.
What RBI Has Said About Coins and Low-Value Notes
The issue is not limited to paper notes. People have also complained about:
- ₹1, ₹2, ₹5, and ₹10 coins being rejected
- Shops refusing to accept coins due to weight or bulkiness
- Transport operators and local businesses misinforming people
According to the RBI:
- All coins minted by the Government of India are legal tender
- Rejection of coins on any ground is unlawful
- RBI urges people to lodge complaints in such cases
What You Should Do If Your Notes Are Rejected
If a merchant, toll booth, or any public service refuses to accept your currency notes or coins, follow these steps:
- Politely inform them that the note is legal tender under RBI guidelines
- Refer to the RBI press release or official website if needed
- If they still refuse, file a complaint with:
- RBI’s Sachet Portal (https://sachet.rbi.org.in)
- Consumer Helpline (National Consumer Helpline: 1800-11-4000)
- Local police if needed in extreme cases
Table 1: Valid ₹10, ₹20, and ₹50 Notes in Circulation
| Denomination | Type | Series/Design | Legal Status | Common Use | RBI Remark |
|---|---|---|---|---|---|
| ₹10 | Paper Note | Mahatma Gandhi | Valid | High | Fully Legal Tender |
| ₹10 | Coin | Standard Issue | Valid | Medium | Must Be Accepted |
| ₹20 | Paper Note | Old & New Design | Valid | High | No Withdrawal Announced |
| ₹50 | Paper Note | Mahatma Gandhi | Valid | Medium | Legal Tender |
| ₹5 | Coin | Govt Minted | Valid | Medium | Still in Circulation |
| ₹2 | Coin | Govt Minted | Valid | Medium | Acceptable Everywhere |
| ₹1 | Coin | Govt Minted | Valid | Low | Not Discontinued |
Table 2: Common Complaints and RBI’s Clarifications
| Issue Reported | Actual RBI Position | Action You Can Take |
|---|---|---|
| Old ₹10 note refused at tea stall | Still valid and in circulation | Inform vendor or lodge complaint |
| ₹20 note not accepted at toll plaza | Fully legal; toll booths must accept | Report to toll authorities |
| ₹50 note rejected for being faded | Valid unless severely damaged | Can exchange at bank if torn |
| ₹10 coin refused by shopkeeper | RBI declares all coins legal tender | Show RBI press release |
| Vending machine not accepting old notes | Technical issue; not a currency issue | Contact machine operator |
| Public transport not taking ₹10 coins | Illegal to refuse coins | Inform local transport authority |
RBI’s Awareness Campaign and Instructions to Banks
To address public confusion, RBI has taken the following steps:
- Released multiple press notes and FAQs on legal tender
- Directed banks to sensitize their branches and clients
- Advised vending machine operators to upgrade systems for accepting all valid notes
- Launched campaigns to educate citizens and vendors about valid currency
The Reserve Bank of India has made it abundantly clear that ₹10, ₹20, and ₹50 notes—as well as coins of ₹1, ₹2, ₹5, and ₹10—are fully valid legal tender. No one has the right to reject them. If you ever face rejection, be assured that you are legally protected, and RBI supports your right to use valid currency.
Public awareness and action are crucial in tackling this misinformation. So the next time someone refuses to accept your ₹10 note or ₹10 coin, confidently remind them of the law and RBI’s official position.
