Coin shortage & coin scam in India

boefje12 · Jun 17th, 2007, 16:51

Quote:

It is 5 am, but you wouldn’t believe it if you were outside the Reserve Bank of India (RBI) headquarters at Fort. There are long, snaking lines and people milling about like they would at peak hour, though the bank will only open at 9.30 am.

They’re all there to collect coins of Re 1, Rs 2 and Rs 5 denominations, of which Mumbai is currently facing a shortage.

Read the full article at Hundustan Times

Coins being Smuggled to Bangladesh?

Quote:

KOLKATA: There are two sides to the story: the crime and the end-use. The crime is confirmed: Indian coins of small denominations like 25 paise, 50 paise, Re 1 and Rs 2 are being smuggled out to Bangladesh, where they are melted and put to varied uses.

Read the Full article from The Economic Times

ranjan154 · Jun 17th, 2007, 17:57

Did you came across news in TOI (Times of India), A having 117 coins in his body !!! Reading the topic i thought you were going to write something about that

boefje12 · Jun 18th, 2007, 18:53

Quote:

Originally Posted by Travinfoindia

Did you came across news in TOI (Times of India), A having 117 coins in his body !!! Reading the topic i thought you were going to write something about that

haha that IS news!!! No actually read it in the local Dutch newspaper and thought it might be an interesting read

roopesh_kohad · Jun 18th, 2007, 21:27

Its a well known scam and I remember a gang was caught (I don't remember the details) in some Indian city where they had smelter for these. The gang was caught with gunny bags full of coins and instead of RBI, they collected coins from the beggars and their lords.

edwardseco · Jun 19th, 2007, 14:49

Gresham's law..

PaniPuri · Jun 20th, 2007, 12:37

I didn't read the link but I have no shortage of coins at the moment. I've been shelping around more than 500rs in coins for the past week, trying to exchange them.

I've never noticed a shortage in coins.

I also have loads of ten rupee notes from the same "source" but honestly, I will not agree to take 562 rupees in coins again. What a headache!

Amyth · Jun 20th, 2007, 13:13

Quote:

Originally Posted by PaniPuri

I've never noticed a shortage in coins.

But there is truth in this when the metallic value of a coin starts exceeding the face value, people start melting and reusing it and hence the shortage. To obviate this, if you remember the govt. had stopped minting the Nickel and Bronze coins of lower denominations in early sixties and the silver one rupee coin became extinct even earlier , sometime in late forties or early fifties ..(though I proudly have one in my closet

)

Nick-H · Jun 20th, 2007, 14:03

British "silver" coins used to be silver. I forget the dates now (I knew when in my schoolboy days). The percentage was first cut from 92.5% (same as most silver ornaments/jewellery, 'sterling' silver) to a more modest amount, and then taken out all together when the coins became nickel.

The historical reason for the milling on the edge of the coins is so that people could not shave a little off for melting, while still having the coins to spend.

The anomaly of gold coins still exists in a number of countries. Now bought for collection and investment, a £1 UK gold sovereign is, I think, still spendable in the shops for £1 --- but worth vastly more for its gold content.

Jun 17th, 2007, 17:57	#2
ranjan154 Amateur Photographer Join Date: Dec 2006 Location: Greater Noida (India) Posts: 844	Did you came across news in TOI (Times of India), A having 117 coins in his body !!! Reading the topic i thought you were going to write something about that __________________ Rakesh Ranjan -------------- http://www.flickr.com/photos/travinfoindia/

Jun 20th, 2007, 14:03	#8
Nick-H Loud-mouthed, Noisy Bird Join Date: Oct 2004 Location: Chennai, India Posts: 25,765	British "silver" coins used to be silver. I forget the dates now (I knew when in my schoolboy days). The percentage was first cut from 92.5% (same as most silver ornaments/jewellery, 'sterling' silver) to a more modest amount, and then taken out all together when the coins became nickel. The historical reason for the milling on the edge of the coins is so that people could not shave a little off for melting, while still having the coins to spend. The anomaly of gold coins still exists in a number of countries. Now bought for collection and investment, a £1 UK gold sovereign is, I think, still spendable in the shops for £1 --- but worth vastly more for its gold content. __________________ . Just one member of the IndiaMike Mod Team

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Jun 18th, 2007, 21:27	#4
roopesh_kohad Senior Member Join Date: May 2006 Location: Pune, Maharashtra Posts: 162	Its a well known scam and I remember a gang was caught (I don't remember the details) in some Indian city where they had smelter for these. The gang was caught with gunny bags full of coins and instead of RBI, they collected coins from the beggars and their lords.

Jun 19th, 2007, 14:49	#5
edwardseco Maha Guru Member Join Date: Sep 2001 Location: Land that shakes and bakes. Posts: 3,777	Gresham's law..

Jun 20th, 2007, 12:37	#6
PaniPuri Member Join Date: Jun 2007 Location: Hyderabad at present Posts: 30	I didn't read the link but I have no shortage of coins at the moment. I've been shelping around more than 500rs in coins for the past week, trying to exchange them. I've never noticed a shortage in coins. I also have loads of ten rupee notes from the same "source" but honestly, I will not agree to take 562 rupees in coins again. What a headache!

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