February 12, 2013 – Many countries are discussing the various advantages and disadvantages of banknotes vs coins. Now The Reserve Bank of India (RBI) reportedly plans to shift to 10-rupee coins. Currently both types, coins and banknotes of this denomination, circulate side by side. However, the RBI has never released any mintage numbers of this coin which has led to the curious phenomenon that these coins are sometimes sold in the internet for prices exceeding their face value by far being considered collector coins.
Starting with the 1-rupee denomination RBI shifted to coins, followed up by the 5-rupee coin, both in 1992. In 1996 the first 5-rupee coin was struck but until now the banknote of the same denomination continues to be the everyday life choice.
India’s Minister of State of Finance Namo Narain Meena stated: ‘The Reserve Bank of India has informed [me] that in the long run, RBI plans to gradually replace 10-rupee bank notes with 10-rupee coins in the country.’ The motifs are economical as RBI deputy governor K. C. Chakrabarty explained: ‘We prefer coins for lower denominations because notes have a much shorter life span of about nine months compared to coins and the cost of producing is much higher.’
In this case, though, the problems lie with the customers and the bank. The banks refuse to lift the 5-rupee coins referring to the clients who do not wish to use coins but prefer banknotes instead.
You can read an article on this topic in The Times of India.
And another one published at Numismaster.
There is also a NBS News service.