"“From this date, these coins (denomination of 25 paise and below) shall cease to be a legal tender for payment as well as on account,” the finance ministry said, adding that the minimum denomination coin acceptable for transaction will be 50 paise from July."
"...At present, stainless steel costs more than Rs 3,000 a tonne, which has made even Rs 1 and Rs 5 coins vulnerable to being melted down for profit.
Officials said the shortage in coins was mainly because smaller denominations were being melted down to make razor blades.
“These blades are sold in small villages as well as smuggled out for sale in neighbouring countries such as Bangladesh, Myanmar and Nepal,” they said.
Apparently, a Rs 5 coin can be melted to yield six blades, which are sold at Rs 2.50 each..." (This explains why those thick Rs.5 coins have suddenly disappeared from Pune market for almost a year now.)
This govt sponsored coin-cranage may be a good idea but I cannot help miss all those glorious coins of denominations that will soon become extinct. (Read a related post तानी मावशीचे दोन आणे.)
