Currency Change: The World and Us

Sucheta Dalal 31 October 2017

Economy & Nation

India continues to grapple with the aftershocks of demonetisation. The latest problem is that of soiled and tattered currency notes of small denominations (Rs10, 20, 50 and Rs100) not being withdrawn by the Reserve Bank of India (RBI). As anger begins to boil over soiled notes, RBI has assured Moneylife of quick action, when we took up the matter at the highest level.

Now, consider how other countries do it. Last year, the United Kingdom changed the one pound coin from a round coin to an 8-cornered one. First, the UK ensured enough of new coins were available and the public was given six months to exchange coins. The same was done when the five-pound polymer note was introduced. In India, we have 25 billion pieces of soiled notes in need of destruction, including 12 billion which were put back into circulation last year, when the trauma caused by demonetisation was at its peak. These notes have affected small traders and the poor the most. Similarly, groups working with the blind have had to start an online petition in despair over confusing currency sizes across denominations. It will be another four months before the problem ends with the withdrawal of older currency notes.

The finance ministry, which runs the coin mints, is even more callous. Despite innumerable media reports about Rs10 coins not being accepted in many parts of the country, it has made no attempt to stop minting them or to clear the confusion through a public awareness campaign. Compounding the problem is the fact that the Rs10 coin is minted in two different designs. Consequently, several people are sitting on genuine coins, which they think are fake, while banks have lakhs of coins that nobody will take. RBI says it commissioned an awareness campaign that may finally clear the air in a few months. That is how we handle currency changes in India!

Comments

User

Mr Jitendra

9 years ago

Nothing will happen I can confirm. The soiled notes will be removed from moneylife's eyes (metro cities) and moved towards the interior India where Moneylife does not have its eyes. Lose change of currency notes in smaller denomination has turned very bad in metro cities in last few weeks.

Arpita Padiyar

9 years ago

Nobody accepts re.10/coin.

c babu challa

9 years ago

The callous attitude of ministry of finance and RBI to the problems of people either regarding shortage of notes or soiled notes or the coins of different kinds which are in circulation. Many a time a coin of Rs.5 or Rs. 10 is under dispute regarding its genuinity. You have raised an important regarding visually impaired or challenged people, it is difficult for normal people to identify the coins and notes. There was a logic in designing the coin or the notes, not whims and fancies and colour of jacket worn. Its time RBI and finance ministry take things seriously and streamline things within the existing framework. Adhoc approach should be stopped and public welfare should be kept in mind.