10 things to know as one cent coin to be demonetised
The Central Bank ceased the issuance of one cent coins July 1, 2017 as it continues with its plans to withdraw the coin from circulation. The one cent coin will no longer be legal tender.
Price rounding on cash transactions will become necessary as fewer coins will be in the system.
Rounding of the lesser or greater adjustment of a final cash payment to the nearest 5 or 10 cents will become necessary during the transition period as the one cent coin is demonetised– just before regulations are introduced to mandate and enforce rules on rounding.
Here are 10 things you should know about price rounding during the transition period.
1. Participation in rounding during the transition period is voluntary for both vendors and consumers
2. Rounding will only apply to cash payments and to the total amount of the bill
3. Vendors and consumers are encouraged to accept the rounding of the final amount of any cash payment or change owed in a consistent and transparent manner
4. A vendor or consumer who wishes to round must obtain the agreement of the consumer or vendor before proceeding with the transaction or before applying the rounding guidelines. There should be an indication to consumers of the vendor’s participation in rounding which could be done by in-store signage visible to the public
5. Where a vendor wishes to round but the consumer does not agree, the vendor should provide exact change to the consumer
6. If the vendor insists on rounding, a consumer may: tender the exact cash amount payable; pay for the good or service using a non-cash method; or no longer purchase goods or services from that vendor
7. Rounding will not apply where a consumer has one cent coins available and can tender the exact amount payable to the vendor in cash as the one cent coin remains legal tender
8.Rounding will not apply to payments made using non-cash methods such as cheques or electronic payments including, but not limited to, debit, credit or prepaid cards
9. Rounding will not apply to individual prices of a good or service and, as such, prices on individual items need not to be changed
10. Rounding will not apply to duties, taxes or charges, which are to be calculated in their exact amount prior to rounding.