Will ₹500 Notes Be Discontinued? Here’s How Much It Costs to Mint Coins and Print Printin India
Andhra Pradesh Chief Minister N. Chandrababu Naidu has called on the central government to withdraw ₹500 currency notes from circulation.
Andhra Pradesh Chief Minister N. Chandrababu Naidu has called on the central government to withdraw ₹500 currency notes from circulation. According to Naidu, phasing out high-denomination currency will not only promote digital transactions but also help reduce corruption and the overall cost of currency printing.
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Digital Payments More Transparent and Traceable
Naidu emphasized that large currency notes make it easier to hoard black money, while digital transactions can be tracked, enhancing transparency in financial dealings. “Encouraging digital currency is the need of the hour,” Naidu said, highlighting the need for a transition towards a more cashless economy.
Cost of Printing Currency and Minting Coins in India
Following Naidu’s statement, many on social media have raised questions about the actual cost of minting coins and printing notes in India. Reports suggest that the cost of production is often higher than the face value, especially for coins.
Cost of Minting Coins
- ₹1 Coin: Costs approximately ₹1.11 to mint (as per a 2018 RTI).
- ₹2 Coin: Costs about ₹1.28 to produce.
- ₹5 Coin: Production cost is ₹3.69.
- ₹10 Coin: Minting cost is around ₹5.54.
These coins are minted by the Government of India at mints located in Mumbai and Hyderabad.
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Cost of Printing Banknotes by RBI
Currency notes from ₹2 to ₹2000 are printed by the Reserve Bank of India (RBI) through its fully-owned subsidiary, Bharatiya Reserve Bank Note Mudran Pvt. Ltd. (BRBNMPL). The printing cost varies by denomination.
Breakdown of Printing Costs per 1000 Notes:
- ₹10 Notes: Approx. ₹960
- ₹100 Notes: Approx. ₹1,770
- ₹200 Notes: Approx. ₹2,370
- ₹500 Notes: Approx. ₹2,290
- ₹2000 Note (per note): Approx. ₹4
This data indicates that high-denomination notes not only facilitate unaccounted wealth but also involve significant production costs.
Declining Coin Production
RTI data also revealed that the number of coins being minted annually has decreased. For instance, 63 crore ₹1 coins were minted in 2018, down from 90.3 crore in 2017, suggesting a shift in monetary circulation trends.
