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Indian five-rupee coins are being smuggled into Bangladesh to be melted down for making six razor blades, which then are sold at Rs2 a piece
Five-rupee coins are being smuggled into Bangladesh from India to be melted down for making razor blades. Six razor blades can be made from a single five-rupee coin. According to police sources, each blade is sold for Rs2, reports PTI.
"This has been going on for quite some time now. We are looking into it," said HR Khan, executive director, Reserve Bank of India (RBI).
"We are now changing the metallic content of the five-rupee coin so that the new ones will not be lucrative for melting. The new metallic content of the cupronickel coin will reduce its attractiveness for smugglers," Mr Khan said.
The RBI has been coordinating with the police and other authorities to ensure that coin smugglers do not have a free run. Periodic instructions were being given to security and intelligence agencies to check the menace, Mr Khan said.
According to bank officials, the smuggling has contributed to the shortage of small coins.
"We are aware of the problem and the RBI is taking initiatives. We are trying to distribute coins through post offices. We have also told the banks to distribute an adequate number of coins," Mr Khan said.