RBI to replace Rs 10 bank note with coins

The Reserve Bank plans to gradually replace all Rs 10 bank notes with coins as life of the paper note is only about 9-10 months, the Lok Sabha was informed on Friday.

Rs 10 coins are in circulation since March, 2009.

"The Reserve Bank of India has informed that in the long run, RBI plans to gradually replace Rs 10 bank notes with Rs 10 coins in the country," Minister of State of Finance Namo Narain Meena said in a written reply.

However, he said, this will depend upon the capacity of the mints to supply the required quantity of coins.

The minister said RBI has also informed that the average life of a Rs 10 denomination bank note is about 9-10 months and its average cost of printing is 96 paise per piece. The cost of minting Rs 10 coin is Rs 6.10.

"Considering the short life span of Rs 10 banknote, printing of the note is not cost effective," Meena added.

He further said with view to elongating the life of the banknotes, particularly lower denominations, it has been decided by the government and RBI to conduct field trials of one million polymer/plastic notes of Rs 10 denominations.

Replying to another question, Finance Minister P Chidambaram said India has become self reliant in printing of currencies.

The total requirement of about 17,600 million pieces of bank notes of various denominations are printed within the country in four presses, he said.

He further said there is no confirmed estimate of fake currency within the country.

However, to address the issue of menace of fake currency, several agencies of the central and state governments are working in tandem to "thwart the nefarious activity" related to Fake Indian Currency Notes (FICN).

Also, the Ministry of Home Affairs has constituted Fake Indian Currency Notes Coordination Centre (FCORD) to periodically review the activities of various agencies.

ALSO READ

IDBI Bank cuts retail deposit rates by 0.5 per cent

Rupee down 32 paise against dollar in early trade

Cobrapost sting: Action against banks involved in wrongdoings soon, says RBI

RBI asks banks in JK to increase CDR to 40 pc by FY14-end