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The Indian government and RBI manage currency, including coins of Re 1, Rs 2, Rs 5, Rs 10, and Rs 20, minted in Mumbai, Kolkata, Hyderabad, and Noida. Digital payments have reduced coin usage, causing a shortage
This mark, often located below the year stamped on the coin, indicates its place of production, acting as the mint’s signature. (AI-Generated)
The management of currency in India is a joint decision made by the Government of India and the Reserve Bank of India. Each year, coins are minted alongside paper currency. At present, coins of Re 1, Rs 2, Rs 5, Rs 10, and Rs 20 are in circulation. Some of these coins have distinct marks, such as dots, stars, or diamonds, each serving a particular purpose.
Mint Marks On Coins
Coins in circulation are produced in mint facilities located in Mumbai, Kolkata, Hyderabad, and Noida. These facilities are commonly referred to as ‘mints’. The dots, diamonds, and stars on the coins indicate the mint where they were produced.
- Kolkata Mint: This is the oldest mint in India, established in 1757. Coins produced here have no distinguishing mark.
- Hyderabad Mint: Established in 1803, coins from the Hyderabad Mint feature a star symbol.
- Mumbai Mint: Coins from the Mumbai Mint are marked with a diamond symbol. It was established in the year 1829. Sometimes, the letter ‘B’ (Bombay) or ‘M’ (Mumbai since 1996) can also be seen in the proof sets.
- Noida Mint: The newest mint in Noida marks its coins with a dot. It was established in 1988.
Coins of the same denomination, such as the Rs 5 coin, appear similar in size, weight, and design. However, a small difference lies in the mint mark. This mark, which is not easily visible, is often located below the year stamped on the coin. It indicates where it was produced and acts like a signature of the mint.
Decline In Coin Usage
With the rise of digital payments, the use of cash, including coins, has significantly decreased. Previously, people carried small change in their purses or pockets, but this is no longer common. Coins received from shops are often given to children or kept in cash registers, leading to fewer coins circulating back into the market.
Coin Shortage
This reduction in coin circulation affects traders. Even the number of coins found in temple hundis during calculations is reported to be lower than before. Banks also face a shortage of coins to meet demand.
To address this issue, traders are turning to private individuals who supply coins on commission. Typically, a commission of Rs 5 is charged for every Rs.100 worth of coins. For example, obtaining coins worth Rs 1000 would incur a commission fee of Rs 50.