India Government Mint stops minting coins to avoid glut
Rupee, two rupees, five, ten rupees minting coins halted. Now RBI stopping the coins in circulation. Manufacturing companies say that this decision has been taken because banks do not have enough space to store coins. Public sector securities printing and Minting corporation of India Ltd (SPMCIL) has issued a notice saying it is stopping the manufacture of coins from Wednesday.
These manufacturing centers (mints) are located in Kolkata, Mumbai, Noida and Hyderabad. These are run by NPMCIL. The Reserve Bank of India (RBI) will collect these coins from mint and save them in those banks. From there it will be brought into circulation. However, the banks have not enough space to store the coins for the past few days, “RBI sources said.
In November 2016, the government decided to cancel Rs 500 and 1,000 notes. After that, old notes were stored in bank. All bank were filled with old notes. Now there is no place for coins to store.
However, the sources say that RBI is trying to solve this problem. The decision to review and utilize the coins will be reviewed from time to time. Until January 8 this year, 2,528 million of coins were remained in government mints.