(b)'commemorative coin": means any coin stamped by the government or any other authority empowered by the-government in this behalfto commemorate any specific occasion or event and expressed in indian currency; (oe) "deface"-means any type of clipping, filing, stamping, or such other alteration of the surface or'shape of a:coinas is readily distinguishable from the effects of 5" reasonable wear; : : ° (a) "government" means the central government; :  (e)"issue" means to put a piece of metal into circulation for-use as money; o "metal": means any metal, base metal, alloy, gold, silver or anyother metal which may be prescribed by the government for the purposeof anycoin; jo (g) "mint" means any organisation established by or-under the authority of the: government to make a coin by stamping metal; a) not ification" means notification published in the official gazette; : cent:  means the percentage of metals prescribed for any coin; n eats prescribed by rules made under this act; 0°" : ls v2 riation from the standard weight and fineness; jeans the weight prescribed for any coin chapter  establishment of mints woesnt may, by notification - ment mays dy! fo stablish a mint at any place which may be managed by the government of { linistry of finance, department of economic affairs or by any other son, 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: a oo : : provided further that where the governmentis ofthe opinion thatitis necessary "or expedient in the public interest so to do, it may authorise the minting of coins by any organisation or government ofany foreign country, within or beyond thelimits of india and acquire such coins either by way of import or otherwise for issue under ifs authority; © eres : ronee rp '(6 abolish any mint  - chapterdenominations, 4: coins may be minted at the mints or at any other place authorised under the proviso dirtensions, to section3 of such denominations not higher than one thousand rupees and of such 35 esiens an dimensions and designs and containing such metals ot mixed metals of such compositions composition of coins: as may be prescribed by the government» standard 5 'the standard weight of the coin of any denomination, minted under the provisions weight and of-section 4, and the remedy allowed in making of:such coins, shall be such:as may be temedy ~~ prescribed in this behalf by the government from time to time, : : 4 (') coin -when-a 6, (1) the coins issued under the authority of section 4:shall be a legal tender in / jegal tender, payment or on account, in case of-— (a) acoin of any denomination not lower than one rupee, for any sum;  coinage'(b)a half-rupee coin, foranysum not exceeding ten rupees; (c) any other coin, for any sim 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, "3 of 1906, & (2) allsilver coins issued 'under the coinage act, 1906 after the 10th day of march; 1940 shall continue as before to be a legal tender in payment or on account, in case of— (a a rupee coin, for any sum; : (o) a half-rupee coin, foranysum not exceeding ten rupees; (c) a quarter-rupee, for any sum not exceeding one rupee: )o provided that the coin has not been defaced and has not lost weight so as to-be less _ thane @ai64 grains troy in the case ofa rupee coin, or (i) 882 grains troy in the case of a half-rupee coin, or (ii) such weight as may be prescribed in the case ofa quarter-rupee coin, le () alinickel, copper and bronze coins which may have been issued under the coinage "30f 1906 act, 1906 before the 24th day of january, 1942 shall continue as before to bea legal tender in payment or-on account for any:sum not exceeding one rupee : : (4) 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 "99 s-ro 1120, dated the 11th may, 1956 issued prior:to: the commencement of the indiaii if of 1964e0 coianage (amendment) act, 1964, shall continue to be a tegal tender in payment or-on account, in case of, hess : - (a) a half-rupee or fifty naye paise coin, forany sum not exceeding ten rupees, (}) any othercoin, for any sum not exceeding one tupee 7) the tupee shall be divided into one hundred units and any such unit may be "deoinial designated by the government, by notification, under such name as it thinks fit system of : 2 coinage (2) allreferences inanyenactment orin any notification, rule or order made 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 (/) 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) albreferences 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 contrued as references to that value expressed respectively in units referred to : in sub-section (j) : : 8 notwithstanding anything contained in section 6, the: government may, by power to call "notification, call in with effect from such date as may be specified in the notification, any" coin coin, of whatever:date or denomination 'andon 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,  chapteriv - diminished, defaced and counterfeit coins9, (1) where any-coin which has been minted and issued by or tinder the authority of power the government is tendered to any person authorised by it to act under: this section, and certain 'cal ;  :  persons to cu : 'diminished: 01 defaced coins, hinished in weig fit so as to be nioré than such per cent below provided in section 5; or : 5 cuttifig or breaking coin under the provisions of clause (a) of sub: ceive and pay for the coin at its face value f i coin under the provisions of clause (0) of subhall observe the following procedure, damely:— : i has been fraudulently 70 person tendering the coin, 'who shall bear the ng; : ; a oa | as reason to believe, that the coin has not been fraudulently i receive and pay for the coin at its face value: or this section a coin which; there is raas believe, |) s deémied to have been 'audulently defaced, power: to cértain persons to cut counterfeit coins, 10 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 teason to believe that the coin is couniterfeit, ke shall by himself or through another person cut or break the coin, and the tenderer shall bear the loss caused by stich cutting or breaking ae power of mint  to delegate its functions, al any officer of the mint duly empowered by the governtient may 'in writing authorise any other organisation of the government to melt withdrawn coins or take 'any help of such organisation for the said purpose : :  explanation—for the purposés of this section "organisation" means any government - : ~ industrial unit or public sector undertaking possessing melting facilities : as :  chapter v ; offences and penalties12 (1) no person shall" prohibition of making: or melting or destruction of coins, _ (0use any inetal piece as coin whether stamped or unstamped, intended to be used as money except by the authority of the government, or : 30 at) melt or destroy any coin, or (iii) use coin other than asa medium of: 'exchange, or (iv) have in his possession, custody or control, - (@) any melted coin, whether in the molten state or in'a solid state, or (b) ally coin ina destroyed or mutilated state, or : gy ie (©) coins substantially in excess of his reasonable requirements for the se of selling stich coins for value other than their face value or for melting or for destroying or for di isposing these coins other than as amedium of exchange explanation—ror the purposes 'of determining 'the reasonable requirements of coins of a person, due regard shall be had to "yo (his total daily tequirements of coins; : gi) the nature of his business, occupation 'or profession;- (ii) the mode of his acquisition of coins; and _fi) the manner in which, and the place at which, : being possessed, held or confrolled by fags (3) nothing 'in this section shall apply i to any person who is found in possession of any metal or-scraps or scissel, etc, of non-recyclable coinage metal, which he may so-possessas a result of valid disposal by auctions bya mint; :  fipt0 the mint, reserve bank of india and its authorised agents, and suppliers ins or coin blanks to the extent of orders placed by or utider the authority of the government until their supply or completion of orders placed by the government; (ti) to any prospective supplier who intends to supply coin or coin blanks as es against a valid tender documents purchased by him provided that quantity is in reasonable agreement with quantity of samples to 'be supplied, : 13, whoever contravenes any provisions of section 12 shall be punishable 'with imprisonment which may extend to seven years and with fine, : 14 (1) no person shall ao (@ make or issue or attempt to issue any metal piece except as provided under section 4 for the purpose of coin; (®) possess, custody or control of any metal piece with the intent to issuethe » piece for use as money for a medium of: exchange, ; 2) whoever contravenes the provisions of sub-section (1) shall be punishable with + as -imprisonment which may extend to one year or-with fine or-with both: pr 'ovided that if any person convicted under this section is again convicted, he shall be punishable with imprisonment which may extend to three years or with fine or with both 1s (1) no person shall-bring by sea or by land or by air into india of 'any piece of metal to be used as coin except with the 'authority or permission of the government bo (2) whoever contravenes: the provisions of sub-section (z) shall be punishable with imprisonment which may extend to seven years and with fine 16 (1) where an offence under this act has been committed by a company, every person whoat the time the offence was committed was in charge of and was responsible to, the company for the conduct of its business, shall be deemed to be'guilty of the offence and js shalt-be liable to be proceeded against and punished accordingly: provided that nothing contained in this sub-section shall render any person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence, q) notwithstanding, anything contained in sub-section (1), where any offence-under act has been committed by a company and 'it is 'proved that the offence has been committed with the consent or connivance of or is attributable to, any neglect on the part of any director, manager, secretary or other officer, such director, manager, secretary or other officer of the company shall be deemed to be guility of that offence and shall be liable to be proceeded against and punished accordingly ; : oe ss | 'penalty      | for        ||---------------|------------|| contravention |            || of            | section    || prohibition   |            || 'and          | penalty    || for           | unlawfut   || making,       | issue      || or            | possession || of            | pieces     || =mmetal      | tobe       || used          | as         || money,        |            || prohibition   |            || =:            |            || and:          |            || penatty      |            || for           |            || bringing      |            || metal:        |            || piece         |            || for          |            || use           |            || 'as           |            || coin         |            || offences      | by         || companies    |            |explanation—-for the purposes of this section, - : ; (a) "company" means any body corporate and includes a firm; society or other association of: individuals; 'and : "°"(b) "director", intelation to— : (ja firm, means a partner or proprietor of the firm; : iz 5 (ii) a society or other association of individuals, memis the person who is "entrusted, under the rules of the society or other association, with the management of the affairs of the society or other association of the individuals, as the case may be : : chapter vi : s le "miscellaneous | : ; forfeiture | 17 any coin or metal'in relation to which any offence under this act has been committed 'shall be forfeited to the government" : : : probation of 18 nothing in the probation of offenders act, 1958 shall apply to offences under this  20 of 1958 lh offenders act aet, 1958 not 19, notwithstanding anything contained in 'the code of criminal procedure, 1973,! 20f 1974 offences under this act shall be cognizable and bailable, but shall not be compoundable 20, in the reserve bank of india act; 1934, : : | to             | applyto    ||----------------|-------------|| coffences      |             || "under         | this        || actes:         |             || offerices      | to          || cognizable,    |             || bailable-an   |             || aon:           |             || compotindable |             || amendment      |             || "of            | act         || 1934          |             |: ( insection 2, in clause (@), for the words and figures "the indian coinage act, : 1906", the words and figures "the coinage act; 2009" shall be substituted; 3 of 1906 gi)-in section 39, for the words and figures "the indian coinage act, 1906", ata 3 of 1906 both the places where they occur, the words and figures "the coinage act, 2009":shall ; be substituted : : : : "21 notwithstanding anything contained in: section 260 of the code of criminal procedure, 1973, offences under this act may be tried summarily bya judicial magistrate of: 2 of 1974 | offences    | 'may    ||-------------|---------|| be          | tried   || suramarily |         |'the first class or a metropolitan magistrate : : 35 | protection    | of         ||----------------|-------------|| action         | taken       || in:            | good-faith || 42 no suit or other legal proceedings shall lie against any person in respect of: anything which is in good faith done, or intended to be done, under or-in pursuance of the provisions of this act : 8 23 (1) if any difficulty arises in giving effect to the provisions of this act, the government may, by order published in the official gazette, make such provisions, not 30 | power         ||---------------|| remove        || difficulties |inconsistent with the provisions of this act as may appear: it to be necessary or expedient for removing the difficulty: sees ; _ "| provided that no such order shall be made under this section after the expiry of two years from the commencement of this act : (2) every order made under this section shall be laid, as soon as may be after itis made, 35° before each house of parliament : ; : power to: make rules "24, (7) the government may, by notification, make rules to carry out the purposes of: this act oo : : : q) in particular, and without prejudice to the generality of the foregoing power, such y rules may provide forall or any of the following matters, namely:— : 0 (a) the use of metal for the purpose of making any coin under clause a) of section 2; - : ; 4s : 8 -o(b) the percent: of metals for any coin under clause (i) of section 2s : (©) the standard weight for anycoin under clause (j) of section 2; @ the dimensions, designs, metals, mixed metals ortheir composition, for coins under section 4; : (@) the standard weight of coins and the remedy allowed in making such coins undersection 5 : 5 (/) the coin of any denomination which: has not been defaced 'and hasnot lost weight asto be less than such weight issued under section 6 rulestob¢ 25, every rule made under this act shall -be laid,-as soon as may beafterit is made, laid before parlianient before each house of parliament, while itis in session fora total period of thirty days, which may be comprised in one 'session or-in two or more successive sessions, and if, before the jo expiry of the session immediately following the session or the successive sessions aforesaid, both houses agree in making any modification in the rule or both houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of 'no effect, as the case may be; so, however, that any such modification or annuiment shall be without prejudice to the validity of anything previouslydone under that rule 1s 26, nothing in this act shall-be deemedto prohibit or restrict the inaking at any mint" | saving    | of    ||-----------|-------|| making    | other || coins     | at    || 'mints   |       |in india of coins intended for issue 'as money by the foreign government of any, territories beyond 'the limits of india : repeal and savings 27, (1) the following enactments are hereby repealed-— (a) the metal tokens act, 1889; 1 of 1889,  (b) the coinage act, 1906; ; 3of 1906 ay (eo) the bronze coin (legal tender) act, 1918; 22 of 1918 (d) the small coins (offences) act, 1971- 52 of 1971 (2) the repeal by this act of the enactments specified in sub-section (/) shall not-— (@ affect any other enactment in which the repeated enactment has been applied, incorporated or referred to; ) affect the validity, invalidity, effect or consequences of anything already done or suffered, or any right, title, obligation or liability already acquired, accrued or incurred or any remedy or proceeding in respect thereof, or any release or discharge of 'or from any debt, penalty, obligation, lability, claim or 'demand, or any indemnity already granted, or the proof of any past act or thing; (c) affect any principle or rule of law, or established jurisdiction, form or course of pleading, practice or procedure, or-existing usage, custom, privilege, restriction, exemption, office or appointment, notwithstanding that the same respectively may have been in any manner affirmed or recognised or derived by, in or from any enactment hereby repealed; : : (d) revive or restore any jurisdiction, office, custom, liability, right, title, privilege, festriction, exemption, usage, practice, procedure or other matter-or: thing not now existing of in force (3) the mention of particular matters in sub-section (7) shall not'be held to prejudice 10 of 1897 ydor affect the general application of section 6 of the general clauses act, 1897, with regard to the effect of repeals os : - 28 notwithstanding the repeal of the enactments specified in section 27; all coins continuance" of existing coins, which were issued as legal tender under the said enactments immediately preceding the date on which the coinage act, 2009 receives the assent of the president shall continue to be legal ye tender in payment or on account, :  statement of objects and reasonsthe coinage act, 1906 provides for applicability, denomination, dimension, design and composition of coins, standard weight of coins and the limit upto which the coin isa legal tender it empowers the central government to establish and abolish mints and to call _in coins and also power to certain persons to cut, diminished or counterfeit or defaced coins and also provides for the procedure in regard to cut coins or coins liable to be cut the act icludes saving provision for making of other coins for issue as money by the of other territory beyond the limits of india italso inchides at emporaty pr ovision tain hyderabad coins which should be continieg as a legal tender in that i commencement of this act; ortage of small coins in the country, the small-coins ke steps to avoid such shortages in the interest of the elting or destruction ofsmall coins or hoarding in the budget speech of 1993, announced setting up al review group in every ministry or department to tevies coe edures and identify changes needed in the light ofthe new policies 2 a _in the department of economic affairs and subsequently another expert grou fe natituted by the cabinet secretariat in 1997, and, thereafter, a commission conatiaed to review administrative laws in 1998 recommended the amalgamation of the coinage act 1906 the metal tokens act, 1889 and the small coins (offences) act, 197} in one con rehensive a et the law commission in its 159th report on repeal and amendmenis ofhaws had als 5 recommended for consolidation of the above acts later on, it: was felt that the bronze coin (cegal tender) act, 1918 may also be repealed, having become obsolete as bronze coins have - been removed from circulation many years back : q : foe _ 3 inthe meantime, the management ofall the india governme  ' ae og nt to a corporation, namely, the security printing and minting co ee ms oe 'which was formed in 2006 after consideration and approval of the cabinet j  nace tod 0h 23-08-2005 to reorganise mints as per their operational tequire ? 4 : : nee ement, i men has been factored in while preparing the coinage bill, 2009, "  and this develop ment d destruction and provides punishment for is act, 1889 was enacted to 8 (0 receive or introduce any will making, issuis or possession the import ofsuch piece nder) act, 1918 was : sat the request of the lak accordance with the requirements 8 in force under section 10, it may, by of any such sos, and thereafter any such 4 the salient features of the bill; inter alia, are as follows:-— (i) it provides for amalgamation of four acts, namely, the metal tokens act, 1889, the coinage act, 1906, the bronze coin (legal tender) act, 1918 andthe smal! coins (offences) act, 1974 into one act} : (i) it provides for punishment with imprisonment which may extend to seven years and with fine ifa person is found to be making or melting or destructing the coins "and for deletion of the provisions of above mentioned: four acts which have singe become redundant; : is the four aforesaid acts which have since become obsolete 5, the bill seeks to achieve the above objectives pranab mukherjee 'new delul; the \ 7th september, 2009, clause 1 of the bill provides for short title; extent and:commencement, clause 2 of the bill provides for definitions of the terms used in the bill, clause 3-of the bill empowers the government to establish and abolish mints andalso provides that the mints may be managed: by other persons authorised in this behalf by the central government it further provides that the mints established before the commencement of this act shall be deemed to have been established by the government : clause 4 of the bill provides for denominations, dimensions, designs and composition i scribed by the government: however, such denomination shall not i m for which certain specified coins will be a legal id the silver coins issued under the coinage act, 1906 (3 of 1906), after the 10th day arch, 1940, andall nickel, copper and bronze coins which may have been issued before the 24th day of january, 1942, shall continue as before to bea legal tender "clause 7 of the bill provides for the decimal system of coinage and provides that a rupee shall be divided into one hundred units and empowers the government to designate any such units by notification, under such name as it thinks fit clause 8 of the bill empowers the government to call in any coin of any date or denomination from a specified date from which the said coin shall cease to be legal tender, however, save to the extent as may be specified in the notification, clause 9 of the bill empowers certain persons to cut diminished or to defaced coins which have been diminished in weight by such per cent below the provided standard weight it also provides for payment of face value of the coin when there is reason to believe that the coin has not been defaced fraudulently the person cutting or breaking the coin has lo observe the procedure as specified : clause 10 of the bill empowers certain persons to cut or break the counterfeit coins where they have feasons to believe that coins are counterfeit clause 11 of the bill empowers a mint to delegate its functions to any organisation of the government with regard to melting of the withdrawn coins clause \2 of the bill provides for prohibition of making or melting or destruction of coins or having possession, custody or control of melted coins or coins in mutilated or - destroyed state it also prohibits possession of coins by any person in excess of reasonable dally requirement of the coins for carrying out his business, 'occupation or profession but this provision does not apply to mint, reserve bank of india or any person having possession of coins as a result of valid auction by a mint, : : clause 13 of the bill provides for penalty of imprisonment and fine for contravention of'clause 12, : : : clause 14 of the bill provides forthe prohibition of unlawful making, issue or possession, custody or control of pieces of any metal to be used as money and-also punishment for contravention of this provision with imprisonment up toone year or fine or with both clause 15 of the bill provides for the prohibition for bringing a metal piece for use as coin into india without the permission of government bysea, land or air and punishment for its contravention, : glause16 of the bill provides that-everyperson who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of its business, shall be deemed to be guilty of that offence clause 17 of the bill provides forthe forfeiture of any coin or metal in relation to which - any offence under this act has-been committed :  clause:18 of the bill provides that the probation of offenders act,1958 (20 of 1958) : shall not apply to offences under this'act : : clause 19 of the bill provides for the offences to be cognizable, bailable and noncompoundable : boe clause 20 of the bill provides for the consequential amendment inthe reserve bank of india act, 1934 (20f 1934) in respect of references of the indian coinage act, 1906 occurring therein 7 a clause 2\ of the bill provides that notwithstanding the provisions of section 260 of e code of criminal procedure, 1973 (2 of 1974), the offences are to be tried summarily bya clal magistrate of the first class or4 metropolitan magistrate of the bill provides for protection ofaction taken in good faith in pursuance fthis bill : re bill empowers the government tomake provision by order published tte, toremoye difficulties which may arise in giving effect to the provisions guch order shall not be made after the expiry of two years from the 'of the bill empowers the government to make rules tocarry out the provisions c 3 5 of the bill provides for laying of the rules made under-this act before each house of parliament aon ; : clause 26 of the bill enables the mints to make coins intended forthe issueas money, by foreign government beyond the limits of india clause 277 of the bill provides for repeal of the metal tokens act, 1889(1:0f 1889), the coinage act, 1906 (30f 2006), the bronze coin (legal tender) act, 1918 (22 of 1918) and the small coins (offences) act, 1971 62 of 1971) and also provides that repeal of these enactments _ isnot to affect the validity, invalidity, effect or consequences of anything done or suffered, ~ any right acquired, accrued or liability incurred, etc, from the enactments repealed clause 28 of the bill provides for continuance of existing coins as legal tender in payment or on account : : :  financial memorandumclause 3-of the bill provides for establishment of mint at any place which may be managed by the government of india in the ministry of finance, department of economic affairs or by any other person which may be authorised for this purpose: however, the mints established before the commencement of this act shall be deemed to have been "established by the government under this clause : 2 clause 3 also provides for abolition of any mint by the government of india, however, in public interest, italso provides for minting of coins by any organisation or government of any foreign country for acquiring such coins, 3 the provisions of the bill do not involve any other expenditure of recurring or nonrecurring nature  memorandum regarding delegated legislation clause 4 of the bill empowers the government to prescribe the dimensions and design of coins containing such metal or mixed metals which may be minted at the mints or any other place authorised under the proviso to clause 3 clause'5 of the bill empowers the government to prescribe the standard weight ofthe coin of any denomination which may be minted under the provisions of clause 4 clause 7: of the bill empowers the government to designate by notification 4 in the official gazette any unit of a rupee under such name as it thinks fit clause 8 of the bill empowers the government to'call in with effect from such date: as may be specified in the notification in the official gazette any coin of whatever date or denomination to cease to-be a legal tender from such date clause 23 of the bill empowers the government to pass an order published in the official gazette toremove the difficulty arising in giving effect to the provisions of this act clause 24 of the bill empowers the government to make rules, by notification i in the official gazette, to carry out the purposes of this act clause 25 of the bill provides that every rule made under this act shall be laid before each house of parliament, the matters in respect of which notification may be issued or rules to be made under "the aforesaid provisions pertain to procedure or administrative detail and itis not practicable to provide for them in the bill itself, the delegation of legislative power is, therefore, ofa' normal character : 