The Union Cabinet today approved the proposal of Ministry of Finance to move the necessary amendments in the Coinage Bill 2009, which is pending in the Lok Sabha with such consequential and drafting changes as may be considered necessary. A Bill to this effect will be introduced in the Parliament.

Background:

The Cabinet in its meeting held in July 2009 had approved the introduction of Coinage Bill 2009 in the Parliament to amalgamate four existing Acts relating to coinage, namely (i) The Indian Coinage Act, 1906; (it) The Small Coins (Offences) Act, 1971; (iii) The Metal Token Act, 1889 and the Bronze Coin (Legal Tender) Act, 1918, apart from revision of the provisions of these Acts keeping in view the present realities,

The Bill was introduced in the Lok Sabha on December 17, 2009 and was referred to the Standing Committee of Finance for examination. The Committee submitted its report to the Lok Sabha on August 31, 2010. In the Report there were many recommendations for amendment to the Coinage Bill 2009. The main recommendations related to quantum of punishment for melting or destruction of coins; broadening of the definition of 'coin' to include one rupee note and consequent repealing of the Currency Ordinance 1940; to specify sums upto which coins of different denominations can be legal tender and doing away with restriction for removal of difficulties.

Legal tender definition broadened to include a low denomination note; amendments adjust penalties and legal tender thresholds. Amendments to the Coinage Bill 2009 will implement Standing Committee recommendations and Cabinet approval to consolidate multiple coinage statutes into a modernised law, revise obsolete provisions, and adopt measures including adjusted penalties for melting or destroying coins, a broadened statutory definition of coin to include a low denomination note with repeal of an outdated ordinance, specified legal tender thresholds for coin denominations, and removal of restrictive procedural provisions, with consequential and drafting changes to be moved in Parliament.