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Govt reverses decision to halt coin production; mints to work at slow pace

Production was stopped since there was no space with banks or the Reserve Bank of India to store the coins

Press Trust of India  |  Kolkata 

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The has gone back on its decision to halt production of entirely, and has asked the four mints in the country to restart production, albeit at a slower pace, industry sources said on Saturday. It has directed the state-run Security Printing and of Limited (SPMCIL) — which runs the four mints in Kolkata, Mumbai, Hyderabad, and — to work on a single shift, instead of the usual two, and keep minting of different denominations. “We have started minting of from yesterday (Friday). We have been asked to produce of all denominations,” said Bijan Dey, vice-president, The said that the of (RBI) had given an indent of 7,712 million coin pieces to the mints for 2017-18, of which 5,900 million units have already been produced. The mints are expected to meet the target in the remaining two-and-a-half months of the current fiscal.

The RBI picks up the and banknotes from the mints for distribution in the market. The had halted from January 9 owing to a glut in the market and lack of storage space. In its order, the had asked SPMCIL to stop production and circulation with immediate effect and urged the mints to follow normal working hours “without any overtime for staff” for printing of banknotes only. The directive did not go down well with the mint workers, as the order would have affected their pay. The said representations were made to the Centre following which the decided to restart production of Earlier, RBI sources had said that the calibration of needs to take place from time to time based on an assessment of the in circulation and storage space. Production was stopped since there was no space with banks or the of to store the The SPMCIL notice, a copy of which is available with the PTI, had also said that as on January 8 this year, there was an inventory of 2,528 million pieces of circulation lying in the mints which were not picked up by the RBI.

First Published: Sat, January 13 2018. 21:30 IST
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