India ditches 25 paise currency

The Indian government has decided to scrap coins of 25 paise denomination from mid-2011.

The quarter-rupee coins, popularly known a ‘chavanni’, will cease to be accepted as a legal form of currency from June 30, 2011, the finance ministry said in a statement on Thursday.

The decision makes 50 paise the minimum denomination coin acceptable for transactions from that date.

“Also, in accounting, i.e. the entries in books of accounts, pricing of products or services or taxes shall also be rounded off to 50 paise or whole rupee from that date,” the ministry said.

Rising steel prices and a strong inflation rate are among the factors behind making the the 25 paise coins infeasible, reports said.