Reflecting inflation’s effect on manufacturing costs, the one-rupee coin, which costs ₹1.11 to produce, exceeds its face value. Minting costs vary for coins ranging from ₹2 to ₹5 and ₹10.From 903 million in 2017 to 630 million in 2018, the coins from the Indian Government Mint revealed a decline. Various currency note values also have particular printing expenses.
India’s government spends what on note and coin printing?
In the era of digital transactions and inflation, the modest one-rupee coin might not seem important, but for many, it has nostalgic meaning that transcends its economic usefulness. Though for many the modest one-rupee coin has nostalgic value that transcends its economic value, it may appear little in the world of digital transactions today. Since it has been around for so long, few of us consider the true expense of creating this coin. Well, you would be astonished to learn that a 1 rupee coin requires more than just a rupee to make.
Based on an RTI reported by India Today in 2018, the coin—which has been in circulation since 1992—costs ₹1.11 to produce, more than its face value. Thickness is 1.45 mm while the diameter of the one-rupee coin is 21.93 mm It is made of stainless steel and weighs 3.76 kg. It is relatively very cheaply produced. For example, to produce the ₹2 coin, it costs ₹1.28; for the ₹5 coin, it is ₹3.69; and for the ₹10 coin, it is ₹5.54. Striking these coins are the Mumbai and Hyderabad Indian Government Mint (IGM). Though current production cost data is not public, inflation between 2018 and 2024 most certainly caused minting each coin’s cost to increase.
The RTI apparently also found that annual coin minting numbers have dropped. With 903 million one-rupee coins produced in 2017, compared to 2018 when 630 million one-rupee coins were struck, according last estimates the output was much greater.
While the Indian government generates the coins, the Reserve Bank of India strikes notes ranging from 2 to 2000.The Reserve Bank has two currency presses through wholly owned subsidiary Bharatiya Reserve Bank Note Mudran Private LTD.
Print a currency note for how much?
Printing money notes depends on their value and hence different expenses. For a single ₹2000 note, for example, it cost up to ₹4; production factors might affect the price somewhat.By example, making 1,000 notes of ₹10 costs ₹960; the equivalent number of ₹100 notes costs ₹1,772. For 500 notes, the cost came out to be almost ₹2,290; 1,000 notes of ₹200 at ₹2,370.