₹1 Banknotes to Make Comeback in India

[Pabitra]

Does it mean the demise of Rupee 1/- as a coin denominations?
Will the new series of coins be restricted to Rupees 2, 5 and 10 only or do you expect 20 and 50 to be coinised?

[Bimat]

Does it mean the demise of Rupee 1/- as a coin denominations?
Will the new series of coins be restricted to Rupees 2, 5 and 10 only or do you expect 20 and 50 to be coinised?

May be yes...or may be not. I remember receiving a ₹1 coin dated 2015 in change recently so as of now, they are continuing with both coins and banknotes. ₹1 banknotes do not circulate at all but command significant premium in market. Practically speaking, I hardly deal with ₹1 and ₹2 coins these days. Most of the price tags (or even the ticket fares etc) are now rounded up to multiples of 5. ₹10 coins circulate quite nicely now, received one in change today (dated 2013)

Replacing ₹20 banknote with coin makes sense but I doubt if it will happen anytime soon. ₹50 coins? Oh well...

Aditya

[Pabitra]

For 2015, all four coins, namely 1, 2,5 and 10/- have come out.
Only 50p has not come out.
Last 50p was 2013.
There were indents in 2014 but were not minted.
For 2015 also, there are indents for 50p.

Last year, RBI Annual Report indicated redesign of the series, mainly to go in for cheaper coins since the final cost appears to have gone above face value. It appears that 1 Rupee coin cost is also crossed the threshold limit. Demise of 50p as a denomination and 1 Re as a ferritic stainless steel coin as 3.79 gram coin is almost a foregone conclusion.

This year, issue of Rs. 10/- commemorative coins has overtaken Rs. 5/- commemorative coins( number of issues released).
Thus, mainstream coin is now Rs.10/- and not Rs.5/-.
It indicates the need for coinising higher denominations ( to retain Bell curve).

[dheer]

Although Rs 10 has been there for quite a few years now ... its still not present in daily use, except for Metro's. The Rs 10 notes are still largely getting printed and quantity not going down ... So my take would be it would take quite a few more years for the Rs 10 coin to become main stream ... The Rs 20 coin is an interesting debate, given that 20 paise didn't make much main stream ... but the Rs 2 did. The Rs 20 currency note is also not main stream, and under such circumstances will the Rs 20 coin be acceptable is a question that only time can tell.

[Bimat]

For 2015, all four coins, namely 1, 2,5 and 10/- have come out.
Only 50p has not come out.
Last 50p was 2013.
There were indents in 2014 but we're not minted.
For 2015 also, there are indents for 50p.

Last year, RBI Annual Report indicated redesign of the series, mainly to go in for cheaper coins since the final cost appears to have gone above face value. It appears that 1 Rupee coin cost is also crossed the threshold limit. Demise of 50p as a denomination and 1 Re as a ferritic stainless steel coin as 3.79 gram coin is almost a foregone conclusion.

This year, issue of Rs. 10/- commemorative coins has overtaken Rs. 5/- commemorative coins( number of issues released).
Thus, mainstream coin is now Rs.10/- and not Rs.5/-.
It indicates the need for coinising higher denominations ( to retain Bell curve).

While what you write makes most sense, Indian bureaucracy thinks otherwise. I have lost confidence in it. Introduction of ₹1 banknotes was perhaps the stupidest thing they could do. They have been talking of polymer ₹10 banknotes for some 8 years now, no signs of it till date. You can just hope that they will improve...one day.

Aditya

[Pabitra]

The Rs 20 coin is an interesting debate, given that 20 paise didn't make much main stream ... but the Rs 2 did. The Rs 20 currency note is also not main stream, and under such circumstances will the Rs 20 coin be acceptable is a question that only time can tell.

I do not know why you say Rs. 20/- note is not main stream.
I am informed that token vending machines in Delhi Metro accept only 10 and 20 Rupees notes.
The balance is always returned in coins.
It appears that Delhi Metro is the biggest receiver of coins among non- banking organisations.
The demand is so heavy that by afternoon, the vending machines are no longer issuing tokens since the coins run out.

Also, it could be 25/- Rupees coin if not, 20/- one.
In countries, where circulating commemoratives are used as general circulation, on the subcontinent, Pakistan and Nepal issue 5/- notes and not coins.
Also, the commemorative coins are of Rs. 25/- and not Rs. 20/-.
However the standard series of denominations pattern of 1, 2, 5 and 10 usually connotes 25 instead of 20 when the denomination is in two digits. Only Euro countries preferred 20 cents as denomination because Europe had such a tradition.

[Pabitra]

They have been talking of polymer ₹10 banknotes for some 8 years now, no signs of it till date. You can just hope that they will improve...one day.

polymer substrate failed in hot climate test as well as Indian user test of stapling the notes as well as scribbling on them.
This user pattern is unique to Inida.

Also, it was almost at that time decided to coinise the Rupeed 10/- denomination.

Now since bulk of note paper is being produced in India itself, importing of polymer substrate is extremely unlikely. The cost benefit ratio is very much against it.

[dheer]

Interesting that self reliance in Bank Note papers has made the polymer fall out ... 

[Pabitra]

Even then, as per internal documents of MoF, the cost of Re 1/- note comes to Re 1/14.

[Bimat]

Website of currency note press, Nashik has this image of specimen ₹1 banknote. I think it's a phitoshopped image. If so, this is shocking!

http://cnpnashik.spmcil.com/Interface/products.aspx

Aditya

[dheer]

Yep the area around numbers looks fishy ... maybe they did'nt have a image of specimen and given its supposed to be destroyed, no one was allowed to take picture ... hence someone took a regular note and converted the numbers and added specimen in photo shop 

[Bimat]

Yep the area around numbers looks fishy ... maybe they did'nt have a image of specimen and given its supposed to be destroyed, no one was allowed to take picture ... hence someone took a regular note and converted the numbers and added specimen in photo shop 

I'm very much sure that some of those 'specimen' banknotes will turn up in market one day...

Aditya

[aarkay]

Hi...

Hope it will not end like the eccentric monarch Muhammad bin Tughlaq's (1325-1350 AD) experiment of introducing leather currency in India ...which failed in due course...

Aarkay

[Pabitra]

Your hope is going to be fulfilled.
Sooner or later, some sanity will come to prevail in MoF.

Already RBI is unable to distribute these notes due to some accounting problem and all 150 million pieces are lying in RBI.

It may also end up as CAG audit objection, like Subba Rao signed 2014 notes.

[dheer]

Already RBI is unable to distribute these notes due to some accounting problem ...

Interesting looks like the RBI and Finance Ministry stand off continues