Section 6 in The Coinage Act, 2011

Title: Coin when a legal tender

Description: (1) The coins issued under the authority of section 4 shall be a legal tender in payment or on account, in case of— (a) a coin of any denomination not lower than one rupee, for any sum not exceeding one thousand rupees; (b) a half-rupee coin, for any sum not exceeding ten rupees; (c) any other coin, for any sum 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. (2) 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 S.R.O. 1120, dated the 11th May, 1956 issued prior to the commencement of the Indian Coinage (Amendment) Act, 1964 (17 of 1964), shall continue to be a legal tender in payment or on account, in case of,-- (a) a half-rupee or fifty naye paise coin, for any sum not exceeding ten rupees; (b) any other coin, for any sum not exceeding one rupee.

Title: Decimal system of coinage

Description: (1) The rupee shall be divided into one hundred units and any such unit may be designated by the Government, by notification, under such name as it thinks fit. (2) All references in any enactment or in any notification, rule or order 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 (1) 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 subsection (1). (3) All references 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 construed as references to that value expressed respectively in units referred to in sub-section (1).

Title: Power to call in coin

Description: Notwithstanding anything contained in section 6, the Government may, by notification, call in with effect from such date as may be specified in the notification, any coin, of whatever date or denomination and on 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.

Title: Power to certain persons to cut, diminished or defaced coins

Description: (1) Where any coin which has been minted and issued by or under the authority of the Government is tendered to any person authorised by it to act under this section, and such person has reason to believe that the coin— (a) has been diminished in weight so as to be more than such per cent. below standard weight as provided in section 5; or (b) has been defaced, he shall, by himself or through another person, cut or break the coin. (2) A person cutting or breaking coin under the provisions of clause (a) of sub-section (1) shall receive and pay for the coin at its face value. (3) A person cutting or breaking coin under the provisions of clause (b) of sub-section (1) shall observe the following procedure, namely:-- (a) if such person has reason to believe, that the coin has been fraudulently defaced, he shall return the pieces to the person tendering the coin, who shall bear the loss caused by such cutting or breaking; (b) if such person has reason to believe, that the coin has not been fraudulently defaced, he shall receive and pay for the coin at its face value.

Title: Power to certain persons to cut counterfeit coins

Description: 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 reason to believe that the coin is counterfeit, he shall by himself or through another person cut or break the coin, and the tenderer shall bear the loss caused by such cutting or breaking.