The Reserve Bank of India (RBI) has the authority to print new coins and notes nationwide, which involves a two-stage process. Recently, rumors have been circulating online that the five-rupee coin may be discontinued. There are two types of five-rupee coins in circulation: one made of brass and the other made of a heavier metal. However, the heavier coins have been less visible in recent times, and neither the central government nor the RBI is producing them. The brass coins are predominantly available in circulation.
The reason for the discontinuation of the heavier five-rupee coins is due to the economic viability of the metal used in their production. The metal can be repurposed to create four to five blades, which can be sold for more than Rs 5, exceeding the coin’s face value. According to regulation, if the production cost of currency exceeds its nominal value, coins or notes will be withdrawn from circulation. This economic consideration has prompted the RBI to phase out the production of certain coins, including the thicker five-rupee coin.