Records relating to recall of silver, nickel, copper and bronze coins are not traceable either in the Department of Economic Affairs in the finance ministry or in the Reserve Bank of India (RBI), the Parliamentary Standing Committee on Finance headed by BJP leader Yashwant Sinha has found.
Silver, nickel, copper and bronze coins were recalled by the RBI several years ago.
The committee report, tabled in Parliament on Tuesday, relates to the Coinage Bill 2009.
Also taking serious note of the destruction of coins for unlawful gains, the committee has recommended up to 10 years of imprisonment for the offence.
Unauthorised melting of coins for making artificial jewellery etc could result in shortage of coins, the committee has observed.
“As pointed out by the Finance Secretary, the intrinsic value of the metal is to be comparatively lesser than the value of the coin,” it has said in the report.
It has added that “this thumb rule should be scrupulously maintained so as to serve as a deterrent against melting and destructing coins for unlawful gains.”
The panel wants strict enforcement of penal provisions in cases of unauthorised making, melting or destructing coins “so as to severely punish the offenders”.
It has also asked the government to develop a mechanism for verifying the genuineness of coins and segregating counterfeit coins.
The Standing Committee report has stressed that the punishment for melting or making or destructing coins should be increased to 10 years as applicable under the Indian Penal Code (IPC).
In the proposed Coinage Bill, the government had set a maximum punishment of seven years imprisonment.
In addition, the Committee has asked the finance ministry to consider its recommendations on rationalisation of shapes and sizes of the coins.
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