RBI Instructs Four Mints to Halt Minting of New Coins

The Government of India has, on a temporary basis, suspended the minting of coins due to an excess in the country's mints until further notice. The Security Printing and Minting Corporation of India Limited (SPMCIL), also recognized as India Government Mint, oversees the operations of India's four coin minting houses situated in Mumbai, Kolkata, Hyderabad, and Noida. 

This decision was officially announced on Tuesday. Notably, the surplus coins stored at these mints have not been released by the Reserve Bank of India (RBI) machinery for circulation.

This decision is primarily driven by the full storage rooms within the government facilities. The storage rooms house substantial quantities of manufactured coins, leaving no available space for additional coinage. The Mint Union emphasizes the need for the government to take tangible steps to retrieve the manufactured coins from these storage rooms promptly and introduce them into circulation to address the prevailing demand in the market.

While the temporary suspension of production is not expected to result in a shortage of coins, it will undoubtedly impact the livelihoods of employees at the nation's currency mints. The decision reflects a proactive effort by the government to effectively manage the existing coin inventory and optimize the production process in response to current market conditions. The government remains actively engaged in seeking solutions to the storage challenge, with the overarching goal of ensuring a seamless flow of coins into circulation and meeting the demands of the public.