During the period of
transition from the British rule, India retained the currency and coinage of
the pre 1947 period. It’s not until the 15th August, 1950 that the
country brought out its distinctive coins. The right and responsibility for coinage vests with the Government
of India in terms of the Coinage Act, 1906 as amended from time to time. Thus
the designing and minting of coins in various denominations is also the
responsibility of the Government of India. Security Printing & Minting
Corporation of India Ltd. (SPMCIL), a Miniratna Category-I, Schedule-‘A’
Central Public Sector Enterprise (CPSE), established on 13th January,
2006 manages four India Government Mints at Mumbai, Alipore (Kolkata), Saifabad (Hyderabad), Cherlapally
(Hyderabad) and NOIDA (UP). During the year 2011-12 a total of 6282 million pieces
of coins (mpcs) were produced,. The Coin production per employee per year has
increased to 1.69 mpcs in 2011-12 as against 1.57 mpcs in the previous year.[1]
Evolution of Coins
Coins in
circulation of Rs 5, 2, 1 and the 50 paise are the result of a process of
evolution from
the Frozen
Series of one rupee being counted in 192 pices; to the Anna Series where rupee was considered to have consisted of 16 annas;
the decimal series with one rupee being divided into 100 paises; until cost benefit
considerations led to the gradual discontinuance of 1, 2 and 3 paise coins in
the seventies.[2] From June 30, 2011 onwards, the coins of the
denomination of 25 paise and below ceased to be a legal tender.[3] Therefore, in exercise of the
powers conferred by Sub Section 15 A of the Coinage Act, 1906, the Central
Government decided to call in from circulation the coins of the denomination of
25 paise and below. As a result, a total of 263597333 coins, which includes
15998555 coins from Andhra Pradesh have been received.[4]
Coinization of Rupees Ten
On 24
July, 2007, the Government issued a notification in respect of coinization of
rupees ten and thereafter coins of rupees 10 were put into circulation with
effect from March 2009. Depending upon the capacity of the Mints to supply the
required quantity of coins, RBI plans to gradually replace the rupees ten notes
with coins in the country.[5]
Distribution of Coins
Coins are received from the Mints and issued into circulation
through the Reserve Bank of India (RBI) Regional Issue offices/sub-offices and
a wide network of currency chests and coin depots maintained by banks and
Government treasuries spread across the country. The RBI Issue
Offices/sub-offices are located at Ahmedabad, Bangalore, Belapur (Navi Mumbai),
Bhopal, Bhubaneshwar, Chandigarh, Chennai, Guwahati, Hyderabad, Jammu, Jaipur,
Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna and
Thiruvananthapuram. These offices issue coins to the public directly through
their counters and also send coin remittances to the currency chests and small
coin depots.[6]
The coins are issued for
circulation only through RBI. The denomination-wise quantity of coins issued by
the RBI to each regional branch during the year 2011-12 (April -
October 2011) is given below:
Regional Branch
|
Denomination
|
(All pieces
|
in millions)
|
|||||||
Office
|
1
|
2
|
5
|
1O
|
Total
|
|||||
Office
|
Allocation
|
Supply
|
Allocation
|
Supply
|
Allocation
|
Supply
|
Allocation
|
Supply
|
Allocation
|
Supply
|
Ahmedabad
|
125
|
46.25
|
250
|
160
|
60
|
42.25
|
30
|
30.4
|
465
|
278.9
|
Bangalore
|
150
|
98.25
|
350
|
157.71
|
60
|
19.25
|
25
|
17.6
|
585
|
292.81
|
Belapur
|
50
|
20.38
|
100
|
21
|
30
|
5.5
|
50
|
14.7
|
230
|
61.58
|
Bhopal
|
50
|
14.75
|
80
|
35.25
|
40
|
6.75
|
30
|
16
|
200
|
72.75
|
Bhubaneswar
|
50
|
20.62
|
100
|
16.68
|
20
|
9.25
|
20
|
7.76
|
190
|
54.31
|
Chandigarh
|
100
|
32.51
|
190
|
70
|
50
|
5
|
40
|
15
|
380
|
122.51
|
Chennai
|
100
|
70.95
|
200
|
92.05
|
50
|
32.75
|
50
|
32
|
400
|
227.75
|
Guwahati
|
40
|
15.5
|
30
|
24.25
|
10
|
7.75
|
20
|
1.7
|
100
|
49.2
|
Hyderabad
|
150
|
111.79
|
260
|
174.19
|
50
|
24.85
|
50
|
26.63
|
510
|
337.46
|
Jaipur
|
75
|
22.5
|
75
|
75
|
30
|
0
|
20
|
6
|
200
|
103.5
|
Jammu
|
20
|
15
|
20
|
22.5
|
15
|
2.5
|
20
|
8
|
75
|
48
|
Kanpur
|
75
|
30
|
70
|
72.5
|
30
|
7.5
|
50
|
20
|
225
|
130
|
Kolkata
|
140
|
172.47
|
300
|
254.01
|
90
|
65.45
|
50
|
19.69
|
580
|
511.62
|
Lucknow
|
50
|
22.5
|
70
|
30
|
10
|
6.5
|
20
|
6
|
150
|
65
|
Mumbai
|
150
|
128.25
|
300
|
188.46
|
120
|
83.33
|
100
|
41.8
|
670
|
441.84
|
Nagpur
|
70
|
18.88
|
75
|
73.75
|
30
|
16.87
|
25
|
16
|
200
|
125.5
|
New Delhi
|
125
|
98.08
|
300
|
241.95
|
60
|
5.7
|
40
|
23.34
|
525
|
369.07
|
Patna
|
40
|
9.79
|
60
|
25.9
|
25
|
10.92
|
30
|
5.28
|
155
|
51.89
|
Thiruvananthpuram
|
40
|
26
|
70
|
44.15
|
20
|
14
|
30
|
8
|
160
|
92.15
|
1600
|
974.46
|
2900
|
1779.35
|
800
|
366.12
|
700
|
315.9
|
6000
|
3435.83
|
|
[7]http://164.100.47.132/Annexture/lsq15/9/au1894.htm 1894/ 2.12.2011
There are 4422 currency chest branches and 3784 small coin depots
spread throughout the country. The currency chests and small coin depots
distribute coins to the public, customers and other bank branches in their area
of operation. Bulk users viz.
retailers, trade bodies, associations, Chambers of Commerce etc. obtain coins
after producing proof of their identity. [8]
Measures to improve the supply
of coins
- The various Mints in
the country have been modernized and upgraded to enhance their production
capacities.
- Government has in
the recent past, imported coins to augment the indigenous production.
- Notes in
denomination of Rs.5 have been reintroduced to supplement the supply of
coins.
New initiatives for
distribution
- Coin Dispensing
Machines have been installed at select Regional Offices of the Reserve
Bank on pilot basis.
- Dedicated
Single-window counters have been opened in several of the Reserve Bank's
offices for issuing coins of different denominations packed in pouches.
- Mobile counters are
being organised by the Reserve Bank in commercial and other important
areas of the town where soiled notes can be exchanged for coins.
Appeal to the Public
The Bank, with active co-operation from various agencies, has been
endeavoring to distribute the coins in an equitable manner to all parts of the
country. Success of the mission calls for the unstinting support from the
people at large and the various voluntary agencies. The Government from time to
time requests members of public to avoid holding on to coins and instead, use
them freely for transactions to ensure that there is a smooth circulation of
coins.[9]
Non-acceptance of 50 paisa coins
Reserve Bank of India (RBI) has received
three complaints regarding non acceptance of 50 paisa coins. These are from
general public alleging that 50 paisa coins are not being accepted. Complainants
were advised that 50 paisa coins continue to be legal tender. The new series
coins have been introduced with ` symbol and with new security features at the
edge which shall facilitate easy recognition. Moreover, the edge security
features shall help in avoiding crude counterfeiting of coins.[10]
In terms of Section 6(1)
(b) of Indian Coinage Act 2011, 50 paisa coins are legal tender up to rupees 10
in each transaction.[11]
Distribution through
Commercial Banks
The
Monetary Policy Statement 2012-13 has inter alia stated that banks are expected
to strengthen their distribution systems and procedures so as to cater to the
growing needs of the common man. RBI has informed that shifting of these
functions to the commercial banks will be effected in a calculated and
calibrated manner; and only on finding evidence of suitable performance of cash
related retail activities by the banks, would RBI consider exiting from retail
function. Besides, while RBI will gradually withdraw from the retail function,
it will continue to manage the distribution of banknotes and coins through the
currency chests and bank branches. The manpower resources which will be freed
as a result of exiting from the retail function will be redeployed more
gainfully for effective supervision of the services rendered by commercial
banks to the public.[12]
Melting of Coins and Supply Shortage
Chronologically,
the main considerations influencing the coinage policy of Republic India over
time have been:
·
The incorporation of symbols of
sovereignty and indigenous motifs on independence;
·
Coinage Reforms with the
introduction of the metric system;
·
The need felt from time to time to
obviate the possibility of the metallic value of coins rising beyond the face
value;
·
The cost-benefit of coinisation of
currency notes
With the obvious reasons of rise in prices of goods, melting of coins by
unscrupulous elements reportedly took place for making artificial jewellery
etc. There have also been reports from local dailies of Bengaluru,
Thiruvananthapuram and Jaipur regarding black marketing/melting of coins for
manufacturing blades, artificial jewellery, bullets etc. RBI has sensitized
their regional offices to take up such matters with civil/Police authorities in
their region at various fora, including State Level Security Committee.[13]
Also
in response to complaints regarding trading/black marketing of coins taking
place at Rajkot, Mumbai and New Delhi during the year 2012-13, RBI has taken up
the complaints with police authorities at appropriate level. Since the trading
of coins may be due to perceived shortage of coins, RBI has also taken the
following steps to address the problem:
i) More remittances of coins were sent to the Currency Chests (CCs) in the areas where shortage of coins was reported.
ii) Shopkeepers and other business establishments, tollgate agencies, etc. have been attached to the nearest CCs for their requirements of coins.
iii) The banks have been encouraged to install Coin Vending Machines (CVMs) for issue of coins by providing them capital subsidy.
iv) The banks have been advised to organize coin melas for issue of coins to members of public.
v) Issue Offices have been advised to keep minimum balances in their vaults and in CCs to ensure availability of coins to bank branches / members of public.
vi) A higher indent for coins in all the denominations has been placed with the Government of India.[14]
i) More remittances of coins were sent to the Currency Chests (CCs) in the areas where shortage of coins was reported.
ii) Shopkeepers and other business establishments, tollgate agencies, etc. have been attached to the nearest CCs for their requirements of coins.
iii) The banks have been encouraged to install Coin Vending Machines (CVMs) for issue of coins by providing them capital subsidy.
iv) The banks have been advised to organize coin melas for issue of coins to members of public.
v) Issue Offices have been advised to keep minimum balances in their vaults and in CCs to ensure availability of coins to bank branches / members of public.
vi) A higher indent for coins in all the denominations has been placed with the Government of India.[14]
Issue of Commemorative Coins
Apart
from issuing regular coins the Government issues
commemorative coins from time to time. Details of such coins issued during the
recent time are:
Year 2007
1. Golden Jubilee Celebration of Khadi & Village Industries Commission.
2. 150tfl Anniversary of Lokmanya Bal Gangadhar Tilak.
3. Platinum Jubilee celebration of Indian Air Force.
Year 2008
1. 150m Anniversary of First War of Independence.
2. Birth Centenary of Shahid Bhagat Singh.
3. Ter-centenary of Gur-ta-Gaddi of Shri Guru Granth Sahibji.
Year 2009
1. 200lh Birth Anniversary of `Louis Braille`.
2. Birth Centenary of Saint Alphonsa.
3. Birth Centenary of Perarinqnar Anna.
4. Birth Centenary of Dr. Homi Bhabha.
5. 60 Years of Commonwealth Day.
Year-2010
1. 125th Javanthi of Dr. Rajendra Prasad. [15]
1. Golden Jubilee Celebration of Khadi & Village Industries Commission.
2. 150tfl Anniversary of Lokmanya Bal Gangadhar Tilak.
3. Platinum Jubilee celebration of Indian Air Force.
Year 2008
1. 150m Anniversary of First War of Independence.
2. Birth Centenary of Shahid Bhagat Singh.
3. Ter-centenary of Gur-ta-Gaddi of Shri Guru Granth Sahibji.
Year 2009
1. 200lh Birth Anniversary of `Louis Braille`.
2. Birth Centenary of Saint Alphonsa.
3. Birth Centenary of Perarinqnar Anna.
4. Birth Centenary of Dr. Homi Bhabha.
5. 60 Years of Commonwealth Day.
Year-2010
1. 125th Javanthi of Dr. Rajendra Prasad. [15]
Year-2011
1.
100
years of Civil Aviation in India.
2.
100
years of Indian Council of Medical Research.
3.
150th
Anniversary of Comptroller and Auditor Generalof India.
Year-2012
1. 60 Years of
Parliament of India 13.05.2012
2. 150th Birth Anniversary of Pandit Moti
Lal Nahru 25.09.2012
3. 150th Year of Kuka Movement 05.10.2012
4. 150th Birth Anniversary of Mahamana
Madan Mohan Malaviya 25.12.2012
5. Silver Jubilee of Shri Mata Vaishno Devi
Shrine Board 31.01.2013[17]
References
1.
http:www.org.in/currency
2.
Reply to Lok Sabha USQ No. 1599 dated 16.08.2011
3.
Reply to Lok Sabha USQ No. 337 dated 23.11.2012
4.
Reply to Lok Sabha USQ No. 1894 dated 02.12.2011
5.
Reply to Lok Sabha USQ No. 2888 dated 29.08.2012
6.
Reply to Lok Sabha USQ No. 4318 dated 22.08.2013
7.
Reply to Lok Sabha USQ No. 1991 dated 02.12.2011
8.
Reply to Lok Sabha SQ No. 450 dated 26.04.2013
9.
Reply to Lok Sabha USQ No. 3986 dated 05.09.2012
10.
Reply to Lok Sabha USQ No. 6007 dated 03.05.2013
11.
Reply to Lok Sabha USQ No. 2512 dated 12.03.2010
12.
Annual Report Ministry of Finance Government of
India 2011-12
13.
Annual Report Ministry of Finance Government of
India 2012-13
[1]
Annual Report Ministry of Finance Government of India 2012-13
[2] http://www.rbi.org.in/currency/museum/c-rep.html
[3]
Reply to Lok Sabha USQ No. 1599 dated 16.08.2011
[4]
Reply to Lok Sabha USQ No. 2988 dated 30.03.2012
[5]
Reply to Lok Sabha USQ No. 337 dated 23.11.2012
[6] http://www.rbi.org.in/currency/museum/c-rep.html
[7]
Reply to Lok Sabha USQ No. 1894 dated 02.12.2011
[8]
Reply to Lok Sabha USQ No. 2888 dated
29.08.2012
[10] Reply
to Lok Sabha USQ No. 4318 dated
22.03.2013.
[11]
Reply to Lok Sabha USQ No. 1991 dated
02.12.2011
[12]
Reply to Lok Sabha SQ No. 450 dated 26.04.2013
[13]
Reply to Lok Sabha USQ No. 3986 dated
05.09.2012
[14]
Reply to Lok Sabha USQ No. 6007 dated
03.05.2013
[15]
Reply to Lok Sabha USQ No. 2512 dated
12.03.2010
[16]
Annual Report Ministry of Finance Government of India 2011-12
[17]
Annual Report Ministry of Finance Government of India 2012-13
