RBI Coin Production: 5 rupees thick coins closed! RBI’s big decision, know what is the reason

1. Economic losses

The price of metal of thick coins was more than Rs 5. These coins were melted and made things like razor blades. 4 to 6 razor blades were made from a coin, which were sold at the rate of Rs 2 per blade. In this way, 8 to 12 rupees were earned from a coin of 5 rupees. This damaged the integrity of the currency and the RBI suffered financial losses. According to RBI rules, if the production cost of the currency is higher than its marked price, it is necessary to stop it.

2. Illegal smuggling and national security

These coins were being smuggled illegally, especially in Bangladesh. There, these coins were melted and made razor blades, jewelery and other items. This activity was a threat to national security, as it reduced the availability of Indian currency and promoted illegal activities across the border. To prevent this, RBI stopped production of coarse coins and began production of thin brass coins, which have low metal value.

Thin brass coins

The RBI has begun the production of thin brass coins instead of coarse coins, which are less expensive and seem less attractive even when melting. These new coins are now widely available in the market. Although thick coins are still accepted as a valid currency, they are gradually disappearing from the market due to their production being closed.

RBI’s currency policy and procedure

The RBI takes the approval of the central government in the process of production and closing of the currency. In this process, the RBI offers a proposal, which is evaluated by the Central Government and senior officials. Only then is it decided to produce new currency or stop the old currency. Currently, coins ranging from Rs 1 to Rs 20 to Rs 20 are in circulation in the market and some reports have said that 30 and 50 rupees coins have also been limited.

Important information for public

It is important to avoid rumors to be broadcast online. The RBI has clarified that the coins of five rupees have not been completely stopped. The production of coarse coins has stopped, but they are still valid currency. People should not pay attention to such rumors and go to the official website of RBI (www.rbi.org.in) (www.rbi.org.in) for correct information.