Is this the reason to change the metal of old Rs.5 coins..?
Many of us must have noticed that the circulation of Rs.5 coins in india has decreased considerably. Old Coins Round-shaped coins made of Gapro-Nickel metal weighing 9.00 grams. Look at the new Rs.5 coin in your purse. Note that it weighs less than the old Rs.5 coin. And the new coins will be thinner. Why this sudden change in appearance and circulation of the Rs.5 coin?
The reason RBI stopped the old Rs 5 coins was that they were being illegally smuggled into Bangladesh. The old Rs 5 coins are made of stable metals and not only that, but the amount of metal is also high. As a result, smugglers used to export these to Bangladesh. Due to this, the circulation of these coins decreased significantly. In Bangladesh, these coins are sharpened and converted into a razor blade shape, and it is said that a maximum of six blades can be made from an old 5 rupee coin. This one plate is bought for Rs.2. When the matter came to the government's attention, the appearance and metal data-sizes of the coin were changed. The RBI thinned the Rs 5 coin from its previous form. It also combines the metal used to make the coin with the cheapest materials available in the market. Because of this, even if Rs.5 coins are exported, they cannot be used to make razor blades.
5 Rupees coin was printed and used in india since 1992. From 1992 to 2006, the 5 rupee coin was minted in Cupro-Nickel metal with a weight of 9 grams. In 2007-2009, the 5 rupee coin was minted in Ferritic stainless steel metal, in 2009-2011, in Brass metal, and from 2011, in Nickel Nickel-Brass metal with a weight of 6 grams.
In 2019, some 5 rupee coins with some changes were minted and circulated in Nickel-Brass metal with a weight of 6.74 grams. The surdata-face and metal value of the coin varies.
The surdata-face value of a coin determines its value. For example, an Rs.5 coin has a surdata-face value of 5. On the other hand, the metal used for the production of this coin determines its metallic value. Thus the production value of the new 5-rupee coin is 3.69 rupees. The market value of the metal used for production will change according to its metal value. In that sense, the metal value of the old Rs.5 coin has a higher surdata-face value than the Rs.5. Because of this, it was melted. Smugglers were making profits due to the value of the metal.