Discussion: Speculation - Introduction of Rs 20 Coin as Definitive

[dheer]

Quite a bit of speculation on the Rs 20 coin in circulation in various posts ... Will try an pull all that into this post, In the meanwhile members are free to give their opinion / predictions as to when the Rs 20 coin will be in Circulation.

If you see historically the new denomination being introduced as circulation in India is as below;
3 Paise Definitive 1964
20 paise Definitive 1968
Rs 2 Commemorative Circulation 1982
Rs 2 Definitive Circulation 1990
Rs 5 Commemorative Circulation 1984
Rs 5 Definitive Circulation 1992
Rs 10 Commemorative Circulation 2009
Rs 10 Definitive Circulation 2005 [minted] / 2009 [released]

So if we stick to Rs and above denomination, for Rs 2 & 5 to be introduced as definitive it took nearly 40+ years ... and then to introduced Rs 10, it took less than 20 Years ... so another new denomination can happen in less than 10 years ...

On the other hand the Rs 20 note or the 20 Paise did not gain much currency though the Rs 2 note and the 2 Paise coin did have quite a bit of circulation and usage ...
So will a Rs 20 coin gain popularity given that the Rs 20 note is not very popular ...

[Pabitra]

3 paise and 20 paise were not affecting the coin boundaries.

Lower boundary of coins ( i.e. when when the smallest denomination coin was stopped ) would also make an interesting reading for comparison.

From what started as 7 coins set ( 1, 2, 5, 10, 25, 50 paise & 1 Rupee) on the decimalization of Rupee, now the range has become only 5 coins.

Interestingly, in case of Pakistan, which almost paralleled India up to a decimalization, it has come to a three coin set. It has abolished paisa and has only 1, 2 and 5 Rupees coins. Incidentally, the have also stubbornly refused to shift up note- coin boundary ( or upper coin boundary, as many prefer to call it) even though they have issued 10 rupees Commemorative Circulation as well as 20 rupees Commemorative Circulation recently.

Other countries in the region such as Bangladesh and Srilanka have been more conservative.

[Pabitra]

However Rs 5 coin is co-existing with the Rs 5 note from 1992 till now almost 20 years !!!

Is Rs 5 note still being issued in reasonable numbers? It is a news to me. I was told that even Rs 10 note is in limited supply and gets premium during wedding seasons, to make garlands.

I know that even 1 Rupee note is printed since that is the only note which carry signature of Secretary Finance. That note is not a promissory note but currency note. It is made just like many countries make 1 cent coin, in their sets.

[dheer]

Is Rs 5 note still being issued in reasonable numbers?

The Rs 5 Note was last printed in 2011 that too only one inset, clearly a decline in amount of printing from 2005 onwards.
The point I was trying to make is although the Rs 5 coin is more or less accepted, the Rs 5 note is still in existance.

I know that even 1 Rupee note is printed since that is the only note which carry signature of Secretary Finance.

I think this is in context that if someone walks into the RBI and says you promise to pay me Rs 100, one would get a bundle of Rs 1 note [The gold standard long being left worldwide]. These notes did not have any promise to pay. Even the coins do not have any promise to pay.

So techincally from an accounting point of view, the RBI would account the the Coins and the Rs 1 note as "Assets" and the notes of all other denomination as "Liabilities" as they are promise to pay.

[dheer]

I am not aware of the Re1 note still being printed .....

Yep the Rs 1 note were stopped printing in 1994 [ya there is a fake 1995 as well  ]. My understanding is that Govt specifically recalled all the Rs 1 notes [and a short while afterwareds the Rs 2 notes] from circulation.

[Pabitra]

I was told that every Secretary finance gets a " bundle " of notes printed and it is gifted to him in a ritual ceremony, very soon after he joins. I heard this in 2007. I do not know if it is correct but the source was extremely reliable. I also do not know as t where do these notes go. Are they ever put up for sale?

[dheer]

I was told that every Secretary finance gets a " bundle " of notes printed and it is gifted to him in a ritual ceremony, very soon after he joins. I heard this in 2007. I do not know if it is correct but the source was extremely reliable. I also do not know as t where do these notes go. Are they ever put up for sale?

That is very interesting news ... not that I am aware of or seen any ... and printing a bundle is quite expensive affair, the reverse plates have to be redone ...