(a) whether there is acute shortage of small denomination of coins in
the country ;
(b) if so, the reasons therefor;
(
(c) whether the small denomination coins are being smuggled in a large
scale to neighbouring countries for making jewellery for higher return ;
(d) if so, the details thereof; and
(e) the corrective steps taken/being taken by the Government in this regard?
MINISTER OF THE STATE IN MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a) to (d) : There have been some reports as well as complaints from
public regarding shortage of coins in certain markets. There has been
abnormal increase in the demand for coins within a span of 6 months. The
same may be ascribed to:
(i) the reported melting of the cupro - nickel coins on account of higher
intrinsic value due to increase in metal prices.
(ii) the reported melting of FSS coins for manufacture of blades and other
uses in various parts of the country and Bangladesh.
(iii) hoarding by unscrupulous elements to take advantage of the situation.
(e) Following steps have been taken by the Reserve Bank of India:
(i) The Government has been minting Rs.2 coins in Ferritic Stainless
Steel (FSS) instead of cupro-nickel since 2005 and has also decided to
mint Rs.5 coin in FSS instead of cupro-nickel.
(ii) Minting of Re.1, Rs.2 and Rs.5 coins has been placed on fast track.
Several issue offices of Reserve Bank of India held coin melas,
distributed coins through mobile banks at market place etc. Reserve Bank
of India has also advised select currency chest branches to do the same.
(iii) To cater to the large demand of hotels, restaurants, retail shops
etc., distribution arrangements have been made through registered
Association/Trade bodies wherever they have come forward for the purpose.
(iv) In Mumbai, arrangements have been made for distribution of coins
through five post offices and similar arrangement is being put in place in
other States.
(v) All the Banks have been advised to ensure distribution of coins
through their currency chests, branches proactively and they have also
been advised to identify some branches in each district for specific
purpose of coin distribution.
(vi) Banks have been advised to consider installation of coin vending
machines.