Mangaluru: According to the sources, the rumors of Rs.10 not being legal tender have hit coastal Karnataka.

Private buses, shopkeepers and even nationalized banks are refusing to accept 10-rupee-coins. Though the banks are denying it, it is said that the coins are not being accepted.

The problem is spreading across DK and Udupi district. The banks are not accepting stating that RBI is not allowing them to remit the coins while the shopkeepers are putting the blame on banks stating that they can’t accepts if the banks don’t.

Some of the bank managers in the city, on being contacted, denied any kind of direction of RBI stating not to accept the coin and told that Rs 10 is still a legal tender and it is offence not to accept the same.

One of the bank official said, "This is nothing but confusion created by the people and some bank officials. There is no such rule about not accepting the coin and RBI has not imposed any ban on the Rs 10 coin. A few bank cashiers, who find it difficult to count the huge quantity of coins, denying them”.

It has time and again been clarified by the Reserve Bank of India that Rs 10 coin has not been banned. The RBI had even issued a notification on November 20 last year clarifying that Rs 10 coins are a legal tender.