From time to time, the Reserve Bank of India issues decisions and rules on the coins and notes circulating in the country. A big decision has been taken regarding the 5 rupee coin. After this, the old coins have been discontinued.
5 Rupee Coins Close: The Government of India always decides how many notes will be printed in the country in which year. RBI has the right to print new coins and notes in circulation in the country. This process is completed in two stages when RBI proposes to print notes and coins to the central government. After this, the central government takes a decision in consultation with senior officials and economists of RBI and the right to print coins and notes is given to RBI. A similar process is also adopted when any note or coin has to be discontinued.
So far, it has been seen many times in the country when coins and notes were discontinued. In the year 2016, 500 and 1000 notes were taken out of circulation. Last year, 2000 notes were also discontinued by the Reserve Bank of India. Similarly, the bank has also taken a big decision regarding the 5 rupee coin.
5 rupee coins discontinued
Coins have always been in circulation along with notes in the currency of India. Coins of 5, 10 and 20 are still in circulation along with 100, 200 and 500 rupee notes. However, in the recent past, it has been observed that the five rupee coin is disappearing from the market. We all have used the five rupee coin and must have noticed that it used to be thicker than other coins. However, now these coins are gradually disappearing and have been replaced by the thin golden coin of Rs 5.
Now the same old coins are seen in the market which are rotating. Apart from this, golden thin coins are seen everywhere. But do you know why this has happened and why RBI has discontinued the old coins. If not, then let us tell you what is the reason behind this.
Metal value more than surface value
All the coins that are made have two types of value, one of which is called surface value and the other is called metal value. The 5 rupees inscribed on the coin is its surface value and the value obtained after melting the metal from which it is manufactured is called metal value. The metal value of the old 5 rupee coin was coming more than the surface value, which people started misusing. This was the reason that RBI decided to discontinue the old five rupee coin and new coins were brought in the market.
Blades were being made
The metal that was used to make the old 5 rupee coin. Shaving blades are made from the same metal. When people came to know about this, they started making blades by melting the coins. These coins were sent to Bangladesh illegally. Where 6 blades were made from one coin. One blade was sold for 2 rupees. Accordingly, 12 rupees were being earned from a 5 rupee coin.
RBI took the decision
When the government came to know about the illegal use of the 5 rupee coin, an investigation was conducted. After the matter came to light, the Reserve Bank of India changed the 5 rupee coin. After this, along with changing the metal of the old coin, its thickness was also reduced.
