Coin Production To Be Halt By The Government Due To Lack Of Storage Space

Noida, Kolkata, Hyderabad and Mumbai are the four government major coin production locations, which have recently stopped their functioning due to lack of accommodation space of the over-flowing coins in the marketplace, mentions a source of the government.

Coin Production To Be Halt By The Government Due To Lack Of Storage Space

The SPMCIL (Security Printing and Minting Corporation of India Ltd.) a state-run government body that circulates and produces the coins stated that the minting of coins had been put on hold. The further information in the notice mentions that there will be no staff working extra than the working hours for minting the coins while continuing the functioning with the usual hours of working time.

The sources from the Reserve Bank of India states that after analyzing the storage space and circulation of coins on a timely base there should be an accurate standardization of the production of the monies. In the current situation, there is lack of storage space for the coins with the RBI or other banks.

The RBI from the minting centers collects the coins to introduce or circulate it in the marketplace. The year 2016, when demonetization came into effect, this leads to the deposition of the banned notes in the banks, which resulted in utilizing the storage space for the junked notes while running out of space for coins.

RBI as an authority for monetary has the responsibility to examine the coin’s usage and supply on a daily base while notifying the DEA (Department of Economic Affairs) which later co-ordinates with Security Printing & Minting Corporation of India Limited.

The notice by Security Printing & Minting Corporation of India Limited further mentions that on January 8 there were 2,528 millions of coins minted were just stored in these government centers without being used. The employees in these minting centers are not satisfied with the decision of coin production halt as it is expected to affect their salary. On the day of the decision coming into effect, there were nearly 1,400 employees in Kolkata center, who were distressed.

 

 

 

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