Recent excess in the Coin forced Govt. to reconsider its coin minting rate. Banks were unable to store a large amount of the coins given the large stock of coins in the market. It asked Security Printing and Minting Corporation of India Limited (SPMCIL), which runs the four government mints in Kolkata, Mumbai, Noida and Hyderabad, to halt their operation since it will only resume once the demand increases in the market.
If you live in India, then you must be aware of the recent developments in the economy, which have made many sectors suffer. the one effect of demonetization which gets very less printed in the media is the issue of excess coins which has been affecting everyone. Many rumors continue to spread to the public without any valid and credible proof.
Sometimes shopkeepers stop taking small sized coins and sometimes banks becomes the roadblock and starts payment in the coins only. The issue has become so strong that RBI has to issue a warning to the banks who are not taking coins from the public.The problem of coins has become very serious since demonetisation.
Banks became weary of the coins and begin hoarding coins at large scale. Also, there were reports in the media that banks have refused to take the coins from the consumer. Many retailers and distributors were also not accepting the coins as the problems became too serious since nobody accepted coins.
Banks have been asked multiple times from the rbi to accept coins as it is illegal not to accept coins. Since demonetisation, the cash crunch took hard hit on the Indian economy forcing people to deal with left coins as they became an important financial tool in the economy. The smaller denomination notes became much more valuable and since they have also been launched in the entirely new currency. People have complained about the excess of coins to the banks multiple times.
The Coin You Need
The Minting stations have been asked to go slow since it has halted the production of the coins on January 9th given the large-scale glut in the market. The media reports that the total 7712 million coin pieces were a target for the year 2017- 18.
Another issue became much more prominent when the government decided to halt the production was The issue of wages to the Mint workers, who were denied wages when not in work since minting has been stopped. The process of coin minting involves RBI, Government and minting stations. RBI puts forward its coin and currency notes target for the fiscal year, which the government directs the state-owned minting stations to carry out the task.
After the printing RBI takes charge of the coins and currencies and distributes in the market as required by different banks. We are yet to see how this pans out in the real market as the coin minting resumes, whether we will see more coins at the banks or in our pockets. This is an as serious issue as the wages of the Mint workers, who was not happy when the minting was halted by the government.