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PUDUCHERRY: The Rs 10 note may soon become history, completely replaced by its coin avatar like the Re 1 and Rs 2 notes in the 1990s and the Rs 5 note more recently. The Reserve Bank of India (RBI) wants to replace the Rs 10 note with coins, provided there's enough demand in market for it. The hitch: Banks are not willing to pick up Rs 10 coins, saying that customers still prefer carrying notes.
"At some point, as and when the demand determines, we will withdraw the Rs 10 note just like the Rs 5 note," said RBI governor D Subbarao. "But the trouble is banks don't want to lift the Rs 10 coins. Banks say people prefer Rs 10 notes, so they are still in circulation. There is a shortage of capacity in the mint and the RBI's priority is for lower denomination coins, which is what poor people use. We saw the same resistance when Re 1 notes were withdrawn in the early '90s," he explained.
Around 11-12 billion notes and six billion coins of different denomination are minted every year. There are Rs 10 coins worth Rs 76 crore currently in circulation, but the RBI wants to shift the entire denomination to coins. "That (withdrawal of Rs 10 notes) is inevitable. Once we are able to meet the requirement with coins, we will withdraw (the notes) because we can't have both coins and notes of the same denomination in circulation. It's simply a question of time," said RBI deputy governor K C Chakrabarty.
Read more here:http://timesofindia.indiatimes.com/business/india-business/More-change-as-Rs-10-note-gives-way-to-coin/articleshow/16677768.cms
"At some point, as and when the demand determines, we will withdraw the Rs 10 note just like the Rs 5 note," said RBI governor D Subbarao. "But the trouble is banks don't want to lift the Rs 10 coins. Banks say people prefer Rs 10 notes, so they are still in circulation. There is a shortage of capacity in the mint and the RBI's priority is for lower denomination coins, which is what poor people use. We saw the same resistance when Re 1 notes were withdrawn in the early '90s," he explained.
Around 11-12 billion notes and six billion coins of different denomination are minted every year. There are Rs 10 coins worth Rs 76 crore currently in circulation, but the RBI wants to shift the entire denomination to coins. "That (withdrawal of Rs 10 notes) is inevitable. Once we are able to meet the requirement with coins, we will withdraw (the notes) because we can't have both coins and notes of the same denomination in circulation. It's simply a question of time," said RBI deputy governor K C Chakrabarty.
Read more here:http://timesofindia.indiatimes.com/business/india-business/More-change-as-Rs-10-note-gives-way-to-coin/articleshow/16677768.cms