RBI to roll out 25 m Rs 10 coins

NEW DELHI: The ad guys may still be yelling ���paisa vasool��� but the smaller unit of Indian currency is sure on its way out. With Rs 10 all set to join the list of coins, the smallest unit under circulation may soon be Re 1. Already, bus conductors and grocers in metros scorn at small changes.

The Reserve Bank will issue Rs 10 coins for circulation in 2006-07. The centre of approximately 7.71 gm bimetallic composite rimmed coin will be an alloy of copper and nickel (cupro-nickel). The 17 mm diameter coin will have a rim of Al-Bronze (aluminium, copper and nickel).

Stating that the Rs 10 coin is expected to be introduced in the next fiscal, a government source said: ���India Government Mint (IGM), Noida has been assigned the task of minting 25 million pieces of Rs 10 coins for 2006-07.���

RBI will, however, not introduce any new coin in the current fiscal. In addition to the Rs 10 coins, mints have been assigned the task to mint 500 million pieces of Re 1 and Rs 2 coins.

Introduction of the Rs 10 coin has also been recommended by the Tarapore Committee, constituted to submit report on currency management. The committee is, however, not in favour of parallel supply of notes and coins of the same denomination.

It has suggested a complete phase-out Rs 5 notes. The suggestion, which has been accepted by the RBI, is unlikely to be implemented immediately due to short supply of coins of same denomination.

According to RBI sources, it is not sustainable to supply notes of small denomination. Small notes (Re 1, Rs 2 and Rs 5) are about 57% of total notes circulation in terms of volume but in they constitute around 7% in value terms. Their average life is found to be one year, hence, they are not sustainable in the long run.

While printing small notes are being discontinued, the Reserve Bank has decided to re-introduce notes of Rs 5 due to shortage of Rs 5 coins.

Interestingly, RBI is empowered to issue coins up to Rs 1,000 denomination. As per the provisions of the RBI Act, 1934 the apex bank can issue notes up to Rs 10,000 or any other denomination specified by the government of India.

Currently coins in India are available in denominations of 10 paise, 20 paise, 25 paise, 50 paise, one rupee, two rupee and five rupee. Coins up to 50 paise are called small coins and coins of one rupee and above are called rupee coins.