The Government on Friday said there have been some reports as well as complaints from the public regarding shortage of coins in certain markets.
NEW DELHI: A day after the Reserve Bank assured the nation that there is no dearth of coins in the country, the Government on Friday said there have been some reports as well as complaints from the public regarding shortage of coins in certain markets.
There has been abnormal increase in the demand for coins within a span of six months, Minister of State for Finance PK Bansal told Lok Sabha in a written reply.
This may be ascribed to the reported melting of the cupro-nickel coins on account of higher intrinsic value due to increase in metal prices, he said.
This may also be due to the reported melting of Ferritic Stainless Steel (FSS) coins for manufacture of blades and other uses in various parts of the country and in Bangladesh and hoarding by unscrupulous elements to take advantage of the situation.
The Minister said the Government has been minting coins of Rs 2 denomination in FSS instead of cupro-nickel since 2005 and has also decided to do so for Rs 5 coin as well.
He said minting of Re 1, Rs 2 and Rs 5 coins has been placed on fast track. Several issue offices of RBI held coin melas, distributed coins through mobile banks at market place.
The Reserve Bank has also advised select currency chest branches to do the same.
The other steps taken by the RBI include distribution arrangements through registered association, trade bodies, advice to banks to consider installation of coin vending machines.
On Thursday, the Reserve Bank officials in major cities of the country held press conferences to deny that there were shortage of coins of any denomination in the country.
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