Mint St to coin Rs 10, take note of plastic

NEW DELHI: Sabse bada rupaiah can move over — you could soon have the sabse bada coin: Rs 10. The high-denomination coin, in the works for long, may finally see light of the day this fiscal. The coin would be bi-metallic, on the lines of coins in Europe and various countries where two metals are displayed in two rings, a government source told ET. The metals that will be used for the coin include ferritic stainless steel and nickel-bronze. The bi-metallic character prevents counterfeiting, say experts.

The coinage division is also working on new design for the Rs 2 coin, the source said. The current ferritic Rs 2 coin design had raked in controversy with Vishwa Hindu Parishad organising protests in some partsof the country. The coin bears a sign of cross which had drawn the organisation’s ire.The Rs 5 coin would also be in steel as there is a feeling within the government that intrinsic value of the coin had surpassed its face value.

A rise in intrinsic value of the coin usually leads to shortage of the coin as people start melting them to sell the metal which fetches a higher price than the amount paid for the coin. At present, Rs 5 coins are made of cupro-nickel, a copper-nickel combine.

In India, coins are issued in denominations of 10 p, 20 p, 25 p and 50 p as well as Re 1, Rs 2 and Rs 5. The government can issue coins up to the denomination of Rs 1,000 under the Coinage Act, 1906.
The Reserve Bank of India is also testing if the rupee notes can be introduced in plastic. Since paper notes wear out soon, many countries in the world like Australia have switched to plastic notes that are more durable and have advanced security features.

The central bank is conducting pilot studies to test the features of plastic notes. A decision on whether such notes could be introduced in the country can be taken only after the results of the study are in, the source added.