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Author Topic: Coin Production at Four Government Mints Temporarily Halted  (Read 448 times)

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Offline Bimat

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Coin Production at Four Government Mints Temporarily Halted
« on: January 10, 2018, 05:31:58 AM »
According a report, RBI has instructed the four mints to stop minting new coins till further notice. This is because a large stock of newly minted coins is lying unused with RBI's currency vaults and apparently, there is no large demand for coins either. So starting yesterday, mints have stopped producing new coins of any denomination.

Aditya
« Last Edit: January 10, 2018, 05:45:06 AM by Bimat »
Caution. The low-hanging fruits are still there maybe for a reason.

Offline Navaneeth

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Re: Coin Production at Four Government Mints Temporarily Halted
« Reply #1 on: January 10, 2018, 05:55:07 AM »
Very bad news. I think this has been done due to banks not taking coins from RBI and not circulating them.

Offline Bimat

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Coin Production at Four Government Mints Temporarily Halted
« Reply #2 on: January 10, 2018, 06:05:35 AM »
One explanation is that lot of coins were produced after demonetization which resulted in over-production.

Will we see 2018 dated coins? ;)

Aditya
Caution. The low-hanging fruits are still there maybe for a reason.

Offline Navaneeth

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Re: Coin Production at Four Government Mints Temporarily Halted
« Reply #3 on: January 10, 2018, 07:43:36 AM »
Will we see 2018 dated coins? ;)

We will for sure. At least in 2nd half.

Offline Bimat

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Coin Production at Four Government Mints Temporarily Halted
« Reply #4 on: January 10, 2018, 08:47:14 AM »
My personal experience is that in last 2-3 months, the circulation of coins has improved drastically. No shortage whatsoever. The ₹10 coins too are circulating in large number, almost every second day I get one in change (the regular ones, not commemoratives). Perhaps it's a nice opportunity for government/RBI to stop printing the ₹10 notes and circulate only the coins. Will save lot of money.

Another question: What will the mint employees do now? ;D Of course they do other work also, but I don't think it's good enough to keep all of them busy all the time?

Aditya
Caution. The low-hanging fruits are still there maybe for a reason.

Offline Bimat

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Coin Production at Four Government Mints Temporarily Halted
« Reply #5 on: January 10, 2018, 09:42:57 AM »
Update: There are about 2500 million coins (total value is unknown) lying unused with mints. RBI is not picking them up as there is no sufficient demand for these.

Aditya
Caution. The low-hanging fruits are still there maybe for a reason.

Offline Figleaf

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Re: Coin Production at Four Government Mints Temporarily Halted
« Reply #6 on: January 10, 2018, 10:07:03 AM »
If you can believe the press, the mint could turn the surplus coins into razor blades profitably :D

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Offline Bimat

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Coin Production at Four Government Mints Temporarily Halted
« Reply #7 on: January 10, 2018, 10:15:18 AM »
If you can believe the press, the mint could turn the surplus coins into razor blades profitably :D

Shhh...Don't give them ideas! ;D

Aditya
Caution. The low-hanging fruits are still there maybe for a reason.

Offline velind

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Re: Coin Production at Four Government Mints Temporarily Halted
« Reply #8 on: January 10, 2018, 10:16:48 AM »
At IG Mint Hyderabad, minting of coins had been halted one month ago and the employees were  re-deployed for "Packing of coins"...................... this is the news update from my friend who works in the mint. Presently, the Labor Union leaders are reaching out to the local MLAs and MPs as they are worried about their future.

Offline Navaneeth

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Re: Coin Production at Four Government Mints Temporarily Halted
« Reply #9 on: January 10, 2018, 01:04:45 PM »
At IG Mint Hyderabad, minting of coins had been halted one month ago and the employees were  re-deployed for "Packing of coins"...................... this is the news update from my friend who works in the mint. Presently, the Labor Union leaders are reaching out to the local MLAs and MPs as they are worried about their future.

Till when they can halt? These are of temporary halts max 3-4 months.

Offline Bimat

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Coin Production at Four Government Mints Temporarily Halted
« Reply #10 on: January 10, 2018, 03:37:29 PM »
The government has halted minting of Rs 1, 2 & 5 coins — here’s why

Tarun Sharma
@talktotarun


The government has temporarily stopped the minting of Rs 1, Rs 2 and Rs 5 coins owing to the excess at the mints in the country. The Security Printing and Minting Corporation of India Limited (SPMCIL), a body that governs India’s four currency minting houses, on Tuesday took the decision as the country’s mints have an excess of 2.528 million pieces (MPC), or coins, which haven’t been lifted by the Reserve Bank of India (RBI) machinery for circulation.

The central bank has not been collecting the coin stockpile as online payment systems are being widely used across the country in the past 6-9 months. The pickup in online payments, even at the micro-transaction level, can be attributed to lack of cash created at the time of demonetization. Dearth of cash in circulation and the government’s push for digital payments prompted many to use cashless payment methods like wallets, BHIM, UPI, among others.

“As the RBI has not taken up the coins which amount to 2528 million pieces, it has been decided to halt the production of new coins at the minting press with immediate effect,” an internal communication from the mint, seen by Moneycontrol, stated.

While the production halt won’t create a shortage of coins, the move will affect the livelihood of employees at the country’s currency mints.

“In compliance to the directions received from…. Letter dated 09.01.2018, this is for the information of all employees that the production of circulation coins in the India Government Mint, Mumbai shall be stopped immediately,” stated another communique the Mumbai mint.

SPMCIL declined to comment on the matter. However, a trade union leader at the Mumbai mint confirmed the development and expects more than 3,000 employees will be affected. The union has already raised the issue with higher authorities.

The mints in the country have a capacity of 9.500 billion pieces a year of Rs 1, Rs 2 and Rs 5 denomination, of which 2.528 billion pieces are still at the mints. RBI had estimated this year's demand for coins at 15.5 billion pieces, sources said.

Source: Money Control
Caution. The low-hanging fruits are still there maybe for a reason.

Offline Bimat

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Coin Production at Four Government Mints Temporarily Halted
« Reply #11 on: January 10, 2018, 03:59:55 PM »
Some media outlets are creating false impression that coins have been demonetized::) This may create confusion and panic among people which may result in declining transactions using coins. Also, the halt is obviously temporary, but who cares to know the truth these days...

Aditya
Caution. The low-hanging fruits are still there maybe for a reason.

Offline Pabitra

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Re: Coin Production at Four Government Mints Temporarily Halted
« Reply #12 on: January 10, 2018, 04:38:53 PM »
The stopping is due to two reasons

1. Commercial banks are unable to lift since their currency chests are full of demonetised notes and RBI is not lifting them. Mints went on making coins and the inventory piled up. There was no space in old mints and all stocks were sent to Noida mint.

2. The new agreement about cost/ Price is yet to be signed. The new design of coins were proposed and finance ministry is yet to approve them. 10 Rupees blanks which were being obtained from private vendor have not been still ordered since the tender has not been floated. The 10 Rupees is likely to become mono metallic.

3. The coins are not going out. Instead a tender for high speed presses was floated and is likely to result in enhancing the capacity from 9 billion pieces to over 20 billion pieces per annum.

Offline dheer

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Re: Coin Production at Four Government Mints Temporarily Halted
« Reply #13 on: January 10, 2018, 06:48:12 PM »
The distribution needs to be addressed. There are quite a few small business that ask Banks for coins of rs 1, 2, 5 and is not fulfilled. There are few voluntary takers for rs 10 coin as the notes are still in plenty.
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Offline Bimat

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Coin Production at Four Government Mints Temporarily Halted
« Reply #14 on: January 11, 2018, 03:42:27 PM »
Workers’ protest at mint over order to stop making coins

Vandana Keelor | TNN | Jan 11, 2018, 07:19 IST

NOIDA: The workers' union at the Noida mint has lodged a protest against directions by the Security Printing and Minting Corporation of India Limited (SPMCIL) to stop production of coins as of January 9, 2018.

The nearly 300 workers at the mint have lambasted RBI for its coin distribution policies, and urged the Centre to look into their grievances. They fear that with the halting of coin production, they may be handed pink slips as they will have no work.

The union has threatened to take to the streets and intensify their protest if their voices are not heard. Workers alleged there are around 1,300 million pieces (mpcs) of coins already manufactured, waiting to be picked up by RBI from its storage rooms.

On January 9, GoI mints across the country — in Hyderabad, Mumbai, Kolkata and Noida — halted manufacturing coins, after RBI slowed down the process of lifting coins from their respective storages, following directions from SPMCIL. "As of January 8, an inventory of 2,528 mpcs of circulation coins is waiting to be picked up from the mints," read the Noida mint's notice. "In compliance with direction received from SPMICL, production of circulation coins shall be stopped immediately. The mint will now follow normal working hours without any overtime, with effect from January 9," it continued.

G P Agarwal, general manager of the Noida mint, told TOI the decision to halt production was taken by the government. "We're abiding by the directions," he said. "Workers are getting their wages even though production has stopped. They should not fear retrenchment, as the measure is temporary," he added.

The SPMCIL direction, however, has not been well received by Noida mint employees, who allege that all the mints will face financial loss and could be pushed into becoming a sick industry if finished coins are not lifted and the current year's indent is reduced. "We had a target of minting 4,250 mpcs of coins in four denominations — Re 1, Rs 2, Rs 5 and Rs 10 — from RBI for financial year 2017-18," said Sohail Khan, president of Mint Shramik Sangh, Noida, who has been working at the Noida mint for over three of the four decades since it came into existence. "However, RBI has only lifted 2,200 mpcs of coins so far, and we still have 1,300 mpcs in stock," he explained. "In the last three months, RBI has not lifted any coins. Now, we've been asked to stop production. We fear if production is not resumed, we'll soon be without jobs," he added.

Union members alleged that all four mints will incur losses during the current financial year because of RBI's inconsistent projections and indents. They demanded the government take concrete steps, pick up the manufactured coins from their storage rooms, and put them in circulation. "In the last financial year, Noida mint recorded a profit of Rs 255 crore," said Jayan A, general secretary of the union. "This sudden halting of production won't create a shortage of coins, but will affect the livelihood of employees," he lamented, adding the issue requires the finance ministry's intervention.

The RBI has refused to comment on the issue.

Source: Times of India
Caution. The low-hanging fruits are still there maybe for a reason.