The Reserve Bank of India (RBI) is considering phasing out the five-rupee coin made of thick metal, though no official statement has been made yet. The coin’s circulation is declining and it is being smuggled and melted down to make blades, harming the economy. Additionally, these coins are being smuggled into Bangladesh, causing a domestic shortage.
The RBI has stopped issuing new thick metal coins but has no plans to phase out other types made of brass or alloys. A final decision on discontinuing the thick metal coin will require government approval, with discussions expected at the RBI’s Monetary Policy Committee meeting in February 2025.
