India currently circulates coins in denominations ranging from 1 rupee to 20 rupees,

By sujjad Rehman

RBI’s New Guideline See Details

The central government and the Reserve Bank of India (RBI) are reportedly in the process of phasing out the 5 rupee coin. This decision is part of a coordinated effort between the two entities, as the minting, issuance, and discontinuation of coins require approval from the central government. The RBI cannot independently ban or introduce coins or currency notes without government authorization.

Details on the 5 Rupee Coin

India currently circulates coins in denominations ranging from 1 rupee to 20 rupees, with occasional discussions around introducing higher-value coins such as 30 and 50 rupees. However, the spotlight is now on the discontinuation of the 5 rupee coin, a denomination available in two distinct varieties:

1. Brass coins – Widely circulated and commonly used.

2. Thick metal coins – Once prevalent but now largely out of circulation.

Reports indicate that the thicker 5 rupee coins are no longer in stock with the RBI or the central government, hinting at a strategic shift in coin management.

Why is the Coin Being Discontinued?

While an official statement on the discontinuation of the 5 rupee coin is awaited, several factors could influence such a decision:

Production costs: The expense of minting coins may outweigh their utility in circulation.

Transition to digital payments: With the rise of digital transactions, the demand for smaller denominations is decreasing.

Streamlining currency: Discontinuing certain coins could simplify currency management and reduce confusion.

Impact on Daily Transactions

The brass 5 rupee coins are still in circulation and will remain legal tender until an official withdrawal announcement is made. However, the absence of thick metal coins in circulation has already led to a noticeable decline in their use.

What’s Next?

As discussions between the government and the RBI progress, an official notification is expected to clarify the status of the 5 rupee coin. In the meantime, citizens can continue using the existing coins without concern.

This move, if finalized, may mark a step towards modernizing India’s monetary system and aligning it with the nation’s evolving financial landscape. Stay tuned for further updates on this development.

Author Profile

Geo National

Hi, I am Sajjad Rehman, the Chief Editor of Geo National News. With over 4 years of experience in news content writing, I have honed my skills in delivering accurate, engaging, and timely news. As a passionate writer, I am dedicated to creating content that informs, educates, and keeps readers updated on current events. My journey in the world of journalism continues to inspire me to craft compelling narratives and bring news stories to life.