India recognizes only two primary forms of currency: paper notes and coinage. While most of us handle these currencies daily, few ever come to rational terms with the costs of making these currencies. Have you ever considered how much the Reserve Bank of India spends minting a mere 1 rupee coin? Well, the answer is something you might not expect!
Who in India Prints the Currency?
Currency is not produced by a singular source. Here is how it all works out:
- The Government of India prints the 1 rupee note and all coins (₹1, ₹2, ₹5, ₹10, and ₹20).
- The RBI is responsible for printing notes from ₹2 to ₹500.
- The ₹2000 note was issued in the past by the RBI but has now been discontinued.
The Real Cost of Minting Coins
You might think that a coin is manufactured for a cost below its face value, and that is not always the case. Here’s what the government spends on minting each coin:
- Cost of making the ₹1 coin – ₹1.11 (Above its worth!)
- Cost of making the ₹2 coin – ₹1.28
- Cost of making the ₹5 coin – ₹3.69
- Cost of making the ₹10 coin – ₹5.54
Pretty interesting, right? 1 rupee coins cost 11 paise extra to be made! This is from an RBI report of 2018, and while costs may have differed somewhat since then, the principle is still the same, coins are more expensive to make than their value!
What About Printing Notes?
Printing currency notes also comes with its expenses:
- ₹10 note – Printing 1,000 notes costs ₹960-₹1,000.
- ₹100 note – ₹1,770 for 1,000 notes.
- ₹200 note – ₹2,370 for 1,000 notes.
- ₹500 note – ₹2,290 for 1,000 notes.
- ₹2000 note – Around ₹4 per note (though printing has been stopped).