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.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
