You might have noticed that the circulation of old Rs 5 coins has reduced drastically. Here the old coins are called Cupro-Nickel circular coins with 9.00 gms weight. Open your wallet and check the new Rs 5 coin. You might have felt that it weighs less than previously minted coins and is thinner. But why is there a sudden change in the appearance and circulation of the Rs 5 coin?
The reason why the Reserve Bank Of India discontinued the old Rs 5 coin was illegal smuggling to Bangladesh. These old Rs 5 coins were made of metals and that too in large quantities. Hence smugglers used to export these coins to Bangladesh. This drastically reduced the circulation of the coin in our country. In Bangladesh, these coins were melted down and shaped like razor blades. You’ll be astonished to learn that this single coin could be used to make 6 blades, each of which could be purchased for Rs 2.
When the government learned about this matter, they immediately altered the appearance and metal content of the coin. The Reserve Bank of India made the 5 rupee coins thinner than the previous version. In addition, the central bank blended the metal with some cheaper elements in the market. Thus even if Rs 5 coins were exported, the smuggler could not manufacture razor blades.
The surface value and metal value of a coin differ. The surface value of the coin determines its worth. For instance, the surface value of the 5-rupee coin is 5. On the other hand, the cost of metal used in manufacturing the coin determines its metal value.
The metal value alters according to the change in the market value of the metal used for its production. Thus the metal worth of the old 5-rupee coin was higher than its surface value when it was melted. Smugglers and crooks profited from its metal value.
Read all the Latest Business News here
Comments
0 comment