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Minting a ₹1 coin in India now costs more than ₹1. But does that hold true for ₹2, ₹5 and ₹10 coins? The answer lies in the economics behind each denomination.
According to FY24 data, minting a ₹1 coin costs ₹1.11, higher than its actual value. That means every ₹1 coin is produced at a net loss.
The ₹2 coin costs ₹1.28 to produce. While it’s cost-effective, it offers thinner margins and the production cost has also risen in recent years.
A ₹5 coin, made from nickel-brass, costs ₹3.69 to mint. It remains economically viable and is one of the most circulated coins in India.
A ₹10 bimetallic coin costs around ₹5.54 to mint, making it economically viable and one of the most widely circulated high‑value coins in India.
The cost of base metals like copper, nickel and zinc has surged globally directly impacting India’s coin minting expenditure.
Despite the minting loss, RBI continues ₹1 coin production to support rural economies, daily wage earners and retail-level transactions.
Many countries have phased out coins that cost more than their face value. But India balances public demand with minting economics.
In FY23, ₹6,725 crore was spent on currency printing and coin minting. The costs are absorbed to preserve trust and liquidity in the cash economy.
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