However, regulation was tightened after 1996, with amendments to the RBI Act, by placing entry point norms and stricter and more detailed regulations on manner, form and quantum of deposit acceptance. Further, in 1999 capital requirement for fresh registration was enhanced from ₹ lakh to ₹ lakh.
We believe that the bulk of coins are held by members of the public either in their homes, offices or car pouches or is it becoming expensive to make trips to the bank for coins? This trend seems to be continuing and we need to find a mechanism to end or discourage it.