Indian Economics P3 - Coins Minting and Issue

The Government of India has the sole right to mint coins. 

-The responsibility for coinage vests with the Government of India in terms of the Coinage Act, 1906 as amended from time to time.

-The designing and minting of coins in various denominations is also the responsibility of the Government of India. 

-Coins are minted at the four India Government Mints at Mumbai, Alipore(Kolkata), Saifabad(Hyderabad), Cherlapally (Hyderabad) and NOIDA (UP).

-The coins are issued for circulation only through the Reserve Bank in terms of the RBI Act.

Denominations

-Coins in India are presently being issued in denominations of 10 paise, 20 paise, 25 paise, 50 paise, one rupee, two rupees and five rupees. Coins upto 50 paise are called 'small coins' and coins of Rupee one and above are called 'Rupee Coins'.

-Coins can be issued up to the denomination of Rs.1000 as per the Coinage Act, 1906.

Distribution

-Coins are received from the Mints and issued into circulation through its Regional Issue offices/sub-offices of the Reserve Bank and a wide network of currency chests and coin depots maintained by banks and Government treasuries spread across the country.

-The RBI Issue Offices/sub-offices are located at Ahmedabad, Bangalore, Belapur (Navi Mumbai), Bhopal, Bhubaneshwar, Chandigarh, Chennai, Guwahati, Hyderabad, Jammu, Jaipur, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna and Thiruvananthapuram.


-These offices issue coins to the public directly through their counters and also send coin remittances to the currency chests and small coin depots.

- There are 4422 currency chest branches and 3784 small coin depots spread throughout the country. 

-The currency chests and small coin depots distribute coins to the public, customers and other bank branches in their area of operation. 

-The members of the public can approach the RBI offices or the above agencies for requirement of coins.

Measures to improve the supply of coins

• The various Mints in the country have been modernised and upgraded to enhance their production capacities.
• Government has in the recent past, imported coins to augment the indigenous production.
• Notes in denomination of Rs.5 have been reintroduced to supplement the supply of coins.

New initiatives for distribution

• Coin Dispensing Machines have been installed at select Regional Offices of the Reserve Bank on pilot basis.
• Dedicated Single-window counters have been opened in several of the Reserve Bank's offices for issuing coins of different denominations packed in pouches.
• Mobile counters are being organised by the Reserve Bank in commercial and other important areas of the town where soiled notes can be exchanged for coins.