No Storage Space Prompts Govt to Halt Coin Production

The production of coins has come to a halt at the four government mints located in Kolkata, Mumbai, Noida, and Hyderabad.


This suspension is attributed to an oversupply in the market and a lack of available storage space. The Security Printing and Minting Corporation of India Limited (SPMCIL), overseeing the mints, issued a directive stating that the "production of circulation coins is being stopped." The notice clarified that the mints will continue their regular working hours without overtime for staff.

Reserve Bank of India (RBI) sources explain that periodic calibration of coin production is necessary based on the assessment of circulating coins and storage capacity. The Reserve Bank of India (RBI) collects coins from the mints for circulation in the market. As part of routine procedures, the RBI, as the monetary authority, reviews coin supply and usage, informing the Department of Economic Affairs (DEA), which then communicates with SPMCIL. These adjustments are temporary and conducted regularly to maintain a seamless coin supply to the public.

According to sources, without such measures, there is a risk of public resistance, leading to a refusal to accept a particular denomination if there is an excess in circulation. The decision to halt coin production has raised concerns among mint employees, as their pay is expected to be affected. Approximately 1,400 employees at the Kolkata mint protested against the move.

The suspension in minting is attributed to the aftermath of demonetization when the Government of India introduced new coins worth Rs 676 crore in denominations of Re 1, Rs 2, Rs 5, and Rs 10 to facilitate transactions among citizens. However, an oversupply of these new coins has led to storage challenges, and with the RBI ceasing pick-up operations, SPMCIL had no choice but to halt coin production.

Comments

Post a Comment

Popular posts from this blog

PM Modi Releases ₹100 Coin on 2550th Bhagwan Mahaveer Nirvan Mahotsav

Image
The Prime Minister, Shri Narendra Modi, inaugurated the 2550th Bhagwan Mahaveer Nirvan Mahotsav and released the ₹100 commemorative coin and postal stamp on the auspicious occasion of Mahaveer Jayanti today, on 21st April at Bharat Mandapam, New Delhi. The Minister of State for Law & Justice, Parliamentary Affairs and Culture, Shri Arjun Ram Meghwal, and the Minister of State for External Affairs and Culture, Smt. Meenakashi Lekhi, were also present to grace the occasion. Bhagwan Mahavir, the 24th Tirthankar, illuminated the path of peaceful co-existence and universal brotherhood through Jain principles like Ahimsa (Non-Violence), Satya (Truthfulness), Asteya (Non-Stealing), Brahmacharya (Chastity) and Aparigraha (Non-attachment). Addressing the gathering, the Prime Minister remarked that the magnificent Bharat Mandapam bears witness to the 2550th Bhagwan Mahaveer Nirvan Mahotsav today. Reflecting on the dance drama presentation by school children on Bhagwan Mahaveer Swami titl
Read more

New Commemorative Coin: 90 Years of Reserve Bank of India

Image
The Government of India will issue a  commemorative coin  of ₹90 on occasion to mark the 90 Years of Celebration of Reserve Bank of India . The Ministry of Finance issued a gazette notification on March 19, 2024, confirming this coin. A momentous milestone approaches for the Reserve Bank of India as it marks its 90th year of existence and operation on April 1. Throughout its journey, the Reserve Bank has solidified its reputation as a credible institution, synonymous with stability, trust, and economic progress. In recent times, it has emerged as a trailblazer in driving innovation and technology adoption within the financial sector. Prioritizing customer-centricity and financial inclusion has always remained at the forefront of its agenda. The Reserve Bank's unwavering dedication to maintaining a delicate equilibrium among price stability, financial resilience, and external sector stability has yielded significant dividends, propelling the country towards a path of heightened grow
Read more

RBI Coin Sets Now Available at India Govt Mint's Delhi Counter

Image
The ₹90  commemorative coin  issued to celebrate the  90 Years of Reserve Bank of India  (RBI) is now available at the Sales Counter at India Government Mint's Corporate Office in New Delhi. The ₹90 coin, featured in the Proof Set and offered in Folder/Blister packaging, is priced at ₹4950 as of April 18, 2024. However, online bookings for the commemorative coin have not yet begun, and there may be a difference in online pricing. It's important to note that the  metal composition  of this ₹90 coin is Pure Silver (99.9%), weighing 40 grams with a diameter of 44 mm. It also features 200 serrations along the edge. The ₹90 is minted by India Government Mint, Kolkata. Earlier, on April 1, 2024, the Prime Minister of India, Shri Narendra Modi, unveiled the ₹90 coin at the headquarters of the RBI in Mumbai, commemorating the institution's 90 years of celebration. India Government Mint , also known as the Security Printing and Minting Corporation of India Ltd. (SPMCIL), has its sal
Read more