Government to stop minting 25p coin?
Already a collectors’ item because of its very little power to buy anything in the market, 25-paisa coin is all set to officially become a pride possession of numismatists only. The government is considering to stop minting new 25-paisa coins, as a finance ministry proposal to this effect is high on the agenda of meeting of Union Cabinet scheduled to meet on Thursday.
Sources in the government said, “Considering the fact that the cost of minting 25-paisa coin is much more than the actual value of the denomination, the finance ministry has proposed to stop producing the coin.”
Reasoning further, while quoting the agenda note, sources said since the buying capacity of the coin in the market is very little, it has gradually become a collector’s pride.
“After a survey it was found out that the coin may not be able to buy anything in the market or even beggars may be refusing to accept the coin as dole, the denomination is quite popular among numismatists,” they said, adding that according to a rough estimate, `100 worth of 25-paisa coins fetches `160.
So long a coin is officially in circulation, a direct trade in it is illegal, a finance ministry official said.
But he added that it was difficult to curb this practice.
“Just like you have kabadiwallahs buying old newspapers and other disposable, the coin collectors also do the rounds of shops, temples and houses in search of coins and buy them at premium and payment is made on the spot, he said.
Interestingly, the rough estimate also revealed that 25-paisa coin is the costliest among other coins.
While 100 one-rupee coins of the heavier variety fetches `140, the later version (minted in the 80’s, early 90s and now) sells for about `110. The 50-paisa coins (`100 worth) sell at `120.
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