In India, paper notes and coins are considered the modes of currency. One rupee to five hundred rupee notes and one rupee to twenty rupee coins are in circulation. Many times news comes that the government will also issue fifty and hundred rupee coins.
There are many types of five rupee coins in our country. The metal and shape used in all are also different. Now the question arises that why the government and RBI had to take this decision to stop the five rupee coin. These coins are hardly seen in market nowadays. There are many reasons behind the lesser appearance of these coins in the market.
Five rupee coin has been less for some time as production has been halted
You must have seen that there is an older thick coin of five rupees. Simultaneously, thin golden-brass coins are the most in circulation these days. Old thick coins of five rupees have been less in the market for some time past.
The reason for this is that making the five rupee coins has stopped. Now we are left with the coins that are present in the market. A big reason has stopped making these coins not because of India but for Bangladesh. Now a change of old coins to new types of coins will be done.
Reason for stopping the 5 rupee coin
The earlier types of 5 rupee coins were also used for making blades. These were quite thick coins. The result-it is made of metal used to make these coins, which is also widely used for making shaving blades. After knowing this fact, people started taking advantage of making blades out of the 5 rupee coin.
Value of the 5 rupees coins
These coins had more metal, hence, more blades were made. These rupees also started going illegally to Bangladesh. There, blades were again made using melted coins into metal. Six blades were made out of a single coin, whereas a single blade sold at a price of 2 rupees. Thus, 12 rupees were made out of 5 rupees. Many more grabbed the opportunity.
The price of the metal was more than five rupees
There are two forms of valuation for any coin: One is value on the surface and another is the metal value. The price on the coin is the surface value. Metal value here describes the price of its metal. Melting that the metal value of the five rupee coin became much more than its surface value. Hence, it starts being misused by taking advantage of that.
Strict step by RBI; Coin Discontinued
Old five rupee coins were getting out of currency in the market. As soon as the government came to know about it through unofficial channels, it started looking into the matter. After investigation, it got uncovered. After this, the RBI did some changes in the five rupee coin. Its metal was changed along with reducing thickness.
