Coin minting is 6 times more expensive than printing notes, then why does RBI bet, how much is the total cost?
The cost of making a coin of 1 rupee is much more than its value.
It costs about 1.1 rupees to mold a coin of 1 rupee.
The cost of making a coin of Rs.10 is Rs.5.54.
New Delhi. You spend the coins and notes kept in your pocket indiscriminately, but have you ever wondered how much it would cost to print (Note Coin Printing Cost). The Reserve Bank does the work of printing coins and notes, and if its claims are to be believed, the cost of minting coins is more than the printing of notes. Despite this, the Reserve Bank of India (RBI) prints fast coins. After all, what is the reason behind this and how does the common man get benefit from it. If there is any funda in it then why the coins of big note are not printed. The answer to all these questions of yours will be found in this news.
First of all, let’s talk about the smallest coin i.e. 1 rupee. In response to a question asked in the Right to Information (RTI), the Reserve Bank itself has told that the cost of making a coin of 1 rupee is much more than its value. It costs about Rs 1.1 to mint a Rs 1 coin, while Rs 1.28 is spent to mint a Rs 2 coin. Similarly, a Rs 5 coin is minted for Rs 3.69 and the cost of making a Rs 10 coin is Rs 5.54.
read this also – 1 day’s earning in lakhs, the whole world believes in the iron of his talent, the British are also ready to pay the asked salary
Now comparing the two…
According to a notification issued by the Reserve Bank of India, in the financial year 2021-22, RBI had to spend Rs 960 on printing one thousand notes of Rs 10. According to this, the cost of printing of one note came to 96 paise. At the same time, it costs Rs 5.54 to mold a coin of Rs 10. This means that the expenditure on coins is about 6 times more than on notes.
Still why RBI mints coins
Seeing the cost of printing both coins and notes, you would think that making coins is a loss-making deal, yet why RBI makes crores of coins every year. Actually, despite the high cost, minting coins is beneficial in many ways than making notes. The biggest thing is that many types of security features have to be used in printing notes. To make paper notes safe, 15 to 17 types of security features have to be used. Not only this, the life of paper notes is also very short. Compared to this, coins keep running for years and there comes a time when printing notes seems costlier than coins.
read this also – Jeff Bezos on the way to Zuckerberg! Second round of layoffs in Amazon too, 9000 employees will be laid off
but does not mint high denomination coins
If minting coins over time looks cheaper than printing notes, then why would the Reserve Bank print coins of higher denominations. The answer to this is also found only in a report issued by the Reserve Bank. Actually, the bigger the note becomes, the more the cost of printing it decreases. According to RBI, it costs 95 paise to print a Rs 20 note, while a Rs 50 note is printed for Rs 1.13. A Rs 100 note is printed for Rs 1.77, while a Rs 200 note is printed for Rs 2.37 and a Rs 500 note for Rs 2.29. If the coins of these notes are minted, then it will be very expensive and it will be very difficult for the customer to use and keep it.
First read breaking news in Hindi News18 Hindi| Read today’s latest news, live news updates, most reliable Hindi news website News18 Hindi.
Tags: business news in hindi, Indian currency, note ban, rbi, RBI Governor
FIRST PUBLISHED : March 22, 2023, 13:33 IST