August 14, 2012 – We reported on continuous coin shortage in India. One factor seemed to be the intrinsic value of some coins being higher than their face value. Additionally coins made of stainless steel were reported to have been exported for being melted into razor blades – which sell also for a higher value compared with the face value of the applied coins.
However, Richard Giedroyc hints at the fact, that these factors alone are not sufficient to explain the lasting issue. Indeed he quotes a Reserve Bank of India functionary who stated: ‘Banks neither have the expertise or infrastructure to distribute coins, which has led to [a] supply demand mismatch like never before.’
Hence distributing seems to be the central aspect of India’s coin shortage which persists despite an increased rate of coin production.
Read the whole article dealing with the subject here.
If you want to know, how Austria is handling this problem, you might be interested in an article we have published on Geldservice Austria specialized in cash logistics.