ஒண்ணும் பெரிதில்லை !! சில்லறை தட்டுப்பாடு
Was your child age – one of shortage or of aplenty !! (it is not about wealth or resources!!) The medium of exchange is Currency and the Indian currency is Rupee. The Rupee is further subdivided into 100 units called ‘paise’ and other than the paper currency – Rupee notes, coins are also in circulation and are legal tenders.
In recent times, we are not seeing – Re. 1/ Rs. 2 / Rs. 5 notes these days – Rs.10 circulating in the market are old, faded, shredded, soiled; there seemingly is shortage for Rs.20 notes as well – Rs.50 are available
A few decades ago, most personal usage was Coins .. .. India faces ongoing small coin shortages, especially ₹1, ₹2, and ₹5 in semi-urban/rural spots. Coins below 50 paise were demonetized years ago, but even valid ones like 50 paise circulate poorly due to hoarding. In the modern World, there are no rules for spending ~ one need not have anything to spend – not even Credit cards (plastic money) ! – people are wary of carrying coins – yet the Rs.10 coin created so much of buzz as it was accepted in some places !!!
As World moves on, due to inflation and change in spending styles, Small change coins often disappear from circulation due to hoarding, high production costs exceeding their face value, and a shift to digital payments. In India, where shortages of coins like 50 paise or ₹1 are common, people stash them in piggy banks or jars rather than spending them. Minting low-denomination coins costs more than their value due to metal prices and inflation, leading governments like RBI to mint fewer.
Central banks phase out low-denomination coins by ceasing minting when production costs exceed face value or usage drops, followed by official withdrawal via government notification that ends their legal tender status. This process often includes public announcements, grace periods for exchange at banks, and rounding rules for transactions.
The Indian Coinage Act, 1906, enacted during British rule, is the primary legislation governing the minting, standards, and legal tender status of coins in India. The Government of India has the sole right to mint coins. Coins are minted at the four India Government Mints at Mumbai, Alipore(Kolkata), Saifabad(Hyderabad), Cherlapally (Hyderabad) and NOIDA (UP). The coins are issued for circulation only through the Reserve Bank in terms of the RBI Act.
Coinage of India, issued by imperial dynasties and middle kingdoms - Cowry shells was first used in India as commodity money. Metal currency was minted in India during the famed Mauryan Empire. Coins of the Indian rupee were first minted in 1950. New coins have been produced annually since then and they make up a valuable aspect of the Indian currency system. After Indian independence, British Indian coins were in use as a frozen currency until India became a republic in 1950.
The first rupee coins of the Republic of India were minted in 1950. These included 1/2 rupee, 1/4 rupee, 2 anna, 1 anna, 1/2 anna & 1 pice coins, and are referred to as the anna series or pre-decimal coinage. Under the anna series, one rupee was divided into 16 annas or 64 pice, with each anna equal to 4 pice. In 1957, India shifted to the decimal system, though for a short period of time, both decimal and non-decimal coins were in circulation.
Not sure, how many of you still carry small change (in coins) and do you remember naya paisa ? – I remember 1 paisa, 2 paisa, 3, 5, 10, 20, 25, 1 rupee, 2 rupee & 10 rupee coins – also remember having seen Rs. 20, 50 & 100 coins !!
Now we don’t see
Rs.2000 notes too. Introduced on
November 8, 2016, during demonetization to meet urgent cash needs, printing
stopped after FY 2018-19 once other denominations stabilized. The highest Valued currency ever printed in
India is ₹10,000.
The highest denomination note was first
introduced in 1938.
Here is a
photo of my collection of coins, [not valid now] – which I proudly used during my school days.
20.3.2026
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