Why Don't ₹10 Coins Have Takers?

Many people are unaware that the first ₹10 coin was minted in 1969, featuring Mahatma Gandhi, followed by commemoratives for FAO in 1970 and 1971, and the 25th anniversary of independence. Although these were circulating commemorative coins, they were crafted from silver and released in limited quantities.

In 2005, the Bi-Metallic ₹10 coins were introduced, initially met with disapproval in India due to perceived poor quality. The prevailing mindset and the convenience of using banknotes hindered the transition to coins, especially since banknotes were abundantly available, including newly designed ones.

The cost of ₹10 Bi-Metallic coins is lower, almost comparable to ₹5 Nickel-Brass coins. This prompted the rejection of the coin's intrinsic value, as they couldn't be sold for melting in the grey market. Consequently, some entities began producing small quantities of duplicates, comprising around 1-2% of the total coins minted.

These coins predominantly circulate in tea shops, toll booths, and local transportation. Widespread rumors of fake ₹10 coins circulated on social media, fueled by comparisons of different coin designs. As a result, many people refused to accept these coins due to fear of counterfeits. I know of a tea shop near my home that had ₹10 coins worth 5–6k, which couldn't be circulated and had to be deposited in the bank.

In response, the Government of India reduced the minting of both definitive and circulating commemorative ₹10 coins in subsequent issues. Meanwhile, the Reserve Bank of India (RBI) has been endeavoring to educate the public through SMS and emails, encouraging acceptance and transactions involving ₹10 coins.

Presently, the Government of India has halted the issuance of commemorative coins in all lower denominations as part of a significant shift in smaller denominations under the GOI policy.