The Reserve Bank of India plans to gradually replace all Rs 10 bank notes with coins as the life of the paper note is only about 9-10 months, the Lok Sabha was informed today.
The Rs 10 coins are in circulation since March 2009.
“The Reserve Bank of India has informed that in the long run, the RBI plans to gradually replace Rs 10 bank notes with Rs 10 coins in the country,” Minister of State of Finance Namo Narain Meena said in a written reply.
However, he said, this will depend upon the capacity of the mints to supply the required quantity of coins.
The Minister said that the RBI has also informed that the average life of a Rs 10 denomination bank note is about 9-10 months and its average cost of printing is 96 paise per piece. The cost of minting Rs 10 coins is Rs 6.10.
“Considering the short life span of Rs 10 banknote, printing of the note is not cost effective,” Meena added.
He further said that with a view to elongating the life of the bank notes, particularly lower denominations, it has been decided by the Government and the RBI to conduct field trials of one million polymer/plastic notes of Rs 10 denominations.
Replying to another question, Finance Minister P. Chidambaram said India has become self-reliant in printing of currencies.
He said that the total requirement of about 17,600 million pieces of bank notes of various denominations is printed within the country in four presses.