New Delhi: India Government Mints have halted minting of coins from Wednesday as Reserve Bank of India has slowed down the process of taking coins from these units creating a glut.
The state-run Security Printing and Minting Corporation of India Ltd (SPMCIL) has issued a direction on Wednesday to this effect as the mints ran out of storage capacity. “In compliance to the direction received from SPMICL this is for the information of all employees that the production of circulation coins in the India Government Mint, Mumbai, shall be stopped immediately,” said an internal notice issued by India Government Mint, Mumbai.
Indian Government Mint operates four mints for the production of coins. The mints are located in Noida, Mumbai, Kolkata and Hyderabad. These mints are responsible for the production of coins which in turn are circulated by RBI.
The Union of these mints has issued a notice to the General Managers of the four mints to stop the production of coins w.e.f January 8. This is being done as the government storage rooms are full. Manufactured coins in large quantities are stored in these store rooms leaving no room for more coins.
According to sources, there are around 2500 million pieces of manufactured coins in the storage rooms waiting to be picked up by the RBI.
“The RBI is not the concerned authority for the minting of coins. The General Managers of the Government Mints would be the right authority to comment on it,” the RBI spokesperson said.
Adding to the comment, the spokesperson asserted that the discontinuation of minting of coins will have no effect on the circulation, since there is no shortage of coins.