Fewer coins in circulation
The amount of coins in circulation is down nearly 37% to Rs 95 crore at the end of August from Rs 150 crore in March.
By Sidhartha, TNN |
NEW DELHI: The amount of coins in circulation is down nearly 37% to Rs 95 crore at the end of August from Rs 150 crore in March, but this does not mean that it’s time to start stocking metals just yet.
Even though the drop, as in 2005, could be seasonal, it is in keeping with the pattern seen over recent years. In 2005, coin circulation in the economy went down 39% from Rs 143 crore at the end of March to Rs 87 crore in the last week of August. Coin circulation is nowhere close to the earlier levels — it would go up to around Rs 250 crore during certain times of the year.
Blame it on the changing consumer preference. Officials attribute the lower amount of metallic currency to Indians being averse to carrying large volumes of coins, and instead, a preference for currency notes, and that too in higher denominations.
As a result, mints are not releasing the same number of coins — or, for that matter, the same value — that they need to replace for normal wear and tear.
“There is a general allergy to coins, which was not the case earlier when you often heard of shortages,” said an official.
What’s more, people in metros and cities are said to be averse to carrying coins in their wallets. Realising the change in consumer preference , the government and the Reserve Bank tried to push more coins in smaller towns and rural areas but even that did not help.
“Even the paanwala wants a bundle of Rs 5 notes since it is easier to carry,” an official said.
Even though the drop, as in 2005, could be seasonal, it is in keeping with the pattern seen over recent years. In 2005, coin circulation in the economy went down 39% from Rs 143 crore at the end of March to Rs 87 crore in the last week of August. Coin circulation is nowhere close to the earlier levels — it would go up to around Rs 250 crore during certain times of the year.
Blame it on the changing consumer preference. Officials attribute the lower amount of metallic currency to Indians being averse to carrying large volumes of coins, and instead, a preference for currency notes, and that too in higher denominations.
As a result, mints are not releasing the same number of coins — or, for that matter, the same value — that they need to replace for normal wear and tear.
“There is a general allergy to coins, which was not the case earlier when you often heard of shortages,” said an official.
What’s more, people in metros and cities are said to be averse to carrying coins in their wallets. Realising the change in consumer preference , the government and the Reserve Bank tried to push more coins in smaller towns and rural areas but even that did not help.
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“Even the paanwala wants a bundle of Rs 5 notes since it is easier to carry,” an official said.
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