What is the 5 Rupee Coin RBI Update? The 5 Rupee coin is no longer available.Why did the RBI make such a significant choice?
News from india india News, Haryana, 5 Rupee Coin RBI News: The circulation of 5 rupee coins in india has changed recently, with new, light, and thin coins replacing the previous, thick, and heavy ones.
This has a fascinating and significant explanation, which you might be shocked to learn.
Old coin production ceased.The distinction between surdata-face value and metal value
The surdata-face value of these coins and their metal value differed significantly. The coins' metal content was far more valuable than Rs 5. people were abusing these currencies by taking advantage of this, and the issue was getting worse very quickly.
The RBI took action.
The reserve bank of india took this matter seriously and made the decision to replace the old coins' metal. In order to decrease the likelihood of blades being produced from them, the new Rs 5 coins are now thinner, lighter, and composed of a different metal. In addition to this, these coins' substance and design have been altered to stop misuse.
Over the past several months, the heavy and thick old Rs 5 coins have progressively vanished from circulation. It has now been replaced by other varieties of light and thin coins. Old coins are no longer produced by the government or the reserve bank of india (RBI); only new coins are now produced.Using metal illegally
The old five rupee coins' metal was being illegally abused. These coins were specifically shipped to Bangladesh, where they were turned into blades. The old coins' metal was so strong and high-quality that it was used to make blades, which were far more expensive than the coins themselves.
By melting one coin, around six blades might be produced, with each blade costing up to Rs 12. As a result, there was a significant problem with Rs 5 coins being melted and sold for more money.Bringing Bangladesh's illicit commerce to light
In Bangladesh, where they were being used to create blades, there was also a case of illegal coin trading. The government and RBI took action and halted the manufacture of old coins in order to address this issue. Now that new coins are being produced, this misuse will be much reduced.