India Spends More Than ₹1 to Make a ₹1 Coin! Here's Why
Motilal Oswal Financial Services • 8 days ago
What This Video Is About
The video discusses the economics of coins in India, particularly the 1 rupee and 2 rupee coins, and why the government continues to produce them despite higher production costs.
Major Ideas Discussed
- The production cost of a 1 rupee coin is around 1.1 rupees, while a 2 rupee coin costs about 1.28 rupees, raising questions about their production.
- As of March 2026, India had approximately 5,500 crores of 1 rupee coins in circulation, accounting for around 38% of all coins.
- The RBI spent around 4,875 crores on printing currency in FY26.
- The government phased out 2 rupee and 5 rupee notes due to high printing and handling costs.
- Coins are more durable and can last for years, making them a cost-effective option in the long run.
- The true cost of currency includes production, maintenance, and circulation costs.
What to Watch Next
The video suggests monitoring the circulation and costs of coins, as well as the RBI's spending on printing currency, to understand the economics behind the coins in circulation.