We usually use one rupee in our daily work many times, just like this question, “Ek Rupee Coin Ka Manufacturing Cost Kitna Hoga?” This question often arouses curiosity in our minds. Out of that curiosity, we may search on Google and many other platforms at various times to know the answer to the question, “Ek Rupee Coin Ka Manufacturing Cost Kitna Hoga?” As a result, we only satisfy our curiosity, but beyond that, there are several important economic aspects to the answer to the question, “Ek Rupee Coin Ka Manufacturing Cost Kitna Hoga?”.
In continuation of that, let us examine the inquiry, What is the production cost of a one rupee coin?, the materials used to make it, and how it affects the economy.
What is the cost of producing a ₹1 coin? And its steps
Process of making a one rupee coin
The coin production process usually involves multiple steps:
Selecting raw materials for coin production – Identifying the right metal for a ₹1 coin.
Cash frame preparation for the coin – Cutting out the blanks in the shape of the coin.
Metal preparation – Strengthening and refining the coin’s material through annealing and cleaning.
Coin making/stamping and sealing – Adding the government-designated mark, year, and logo.
Proper quality testing and packaging
What is the common metal used in making one Rupee Coin?
Metals used in one Rupee Coin:
It is made of stainless steel (ferritic grade) along with nickel, chromium, and iron.
Amounts:
Nickel content: 4–5%
Chromium content: 11%
Iron content: 83–84%
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Estimated Ek Rupee Coin Ka Manufacturing Cost Kitna Hoga?
The Reserve Bank of India (RBI) and the Security Printing and Minting Corporation of India (SPMCIL) give the following information about the production cost of one rupee coin:
The Reserve Bank of India has to spend ₹1.11 to ₹1.28 to produce one rupee coin.
However, this cost varies from time to time due to the following reasons:
- Changes in the price of raw materials used in the production of the coin
- Electricity, labour, weather and labor costs
- Inflation
- Transportation costs and minting costs, etc.
Conclusion: The production of one rupee coin costs more than the face value of the coin or the government’s denomination.
The Financial Loss To The Government In Producing This One Rupee Coin Is
Loss per coin: If the Government of India spends ₹1.25 on producing ₹1 coin, then the loss per coin will be ₹0.25.
According to RBI data, in the financial year 2023-24, about 3,058 lakh ₹1 coins were produced by the Government of India Mint.
The resulting calculation shows:
Number of one rupee coins = 3,058 lakh = 305.8 million
Additional cost per coin = ₹0.25
Total additional cost (loss) = 305.8 million × ₹0.25 ≈ ₹76.45 million
Is coinage really sustainable?
India is a country that still uses metal coins for cash transactions. As a result, there is no scope for a fully coined bond in India. However, the Indian government has introduced digital payments as an alternative to coins to reduce costs.
Comparison: ₹1 Coin vs ₹1 Note
| Particulars | ₹1 Coin | ₹1 Note |
|---|---|---|
| Lifespan | 15–20 years | 1–2 years |
| Manufacturing Cost | ₹1.11 – ₹1.28 | ₹1.14 – ₹1.22 |
| Durability | Higher | Lower |
| Sustainability | High (long-term use) | Low |
Therefore, a 1 Rupee Coin proves to be more economical than a Rupee note in the long run due to its durability.
The exact history and evolution of the one Rupee Coin
The changes from the old currency to the new currency are:
- Old currency: The old coins were usually made of bronze and copper.
- Post-1990s: Since then, nickel and steel have been used more and more since the late 1990s due to the ease of nickel and steel
- Late 2011: Stainless steel was used from 2011 onwards, which continues to this day.
The main purpose of each of these changes was to reduce production costs, bring variety in design, and incorporate security and our own traditions.
Public reaction and awareness to the creation of one Rupee Coin
Many people usually do not value the 1 Rupee Coin, they often feel reluctant to give and receive this coin. However, when considering all aspects, it is seen that the economic importance of the one Rupee Coin is immense.
Currently, The One Rupee Coin Is In Circulation:
- Kirana stores
- Bus fares
- Vending machines
- Toll booths
In addition, the use of one Rupee Coin is very high in many other places.
So should the production of 1 Rupee Coins be stopped?
Advantages:
- The government can save that money from its additional losses
- It can encourage the digital economy in line with the current times
Disadvantages:
- Difficulties in pricing
- It affects small and daily transactions
Conclusion: The government’s goal is to maintain a temporary balance by creating currency along with digital transactions.
Future of metal coin production in India
- Automation and technological advancements can reduce production costs.
- Research is underway on making plastic coins and coins from light metals to reduce costs.
- A gradual shift is expected with the ease of UPI and QR code payments.
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Conclusion
The production cost of a one rupee coin is higher than its denomination, falling between ₹1.11 and ₹1.28. To manage and reduce this additional cost, the government has focused on developing alternative metals, metal versions and mints. Although the production cost of the one rupee coin is higher than its value, it is used for all transactions in India, so it is necessary to keep the production of this coin efficient despite the additional cost.
FAQs: Ek Rupee Coin Ka Manufacturing Cost Kitna Hoga?
Q. How much does it cost to produce a ₹1 coin?
A. It costs approximately ₹1.11 to ₹1.28 to make one ₹1 coin.
Q. What metals are used to make ₹1 coins?
A. ₹1 coins are made from stainless steel, mainly using iron, chromium, and nickel.
Q. Does the government lose money on making ₹1 coins?
A. Yes, the government may lose between ₹0.10 to ₹0.28 per coin due to high production costs.
Q. Is printing ₹1 notes cheaper than making coins?
A. The cost is about the same, but ₹1 notes don’t last as long as coins.
Q. Will the government stop producing ₹1 coins?
A. No, not yet. ₹1 coins are still in regular use across the country.
Q. How long do coins and notes last?
A. ₹1 coins can last 15–20 years, while ₹1 notes usually last only 1–2 years.
Q. Will ₹1 coins be replaced in the future?
A. Not immediately, but the government is exploring alternatives like plastic coins and digital currency options.
