Do you remember the old 5 Rs coin? It used to be quite thick and heavy compared to the current 5 Rs coin. But have you ever wondered why the design of the coin changed so drastically? The answer may surprise you.
In 2016, the Indian government discontinued the printing of 1,000 and 500 rupee notes to curb the circulation of black money and fraudulent activities. However, this discussion is not about notes, it is about coins.
Before the change, the old 5 Rs coins were minted using more metal, which made them thicker and heavier. However, this led to a problem - illegal smugglers started using the large amounts of metal to their advantage. They started to shave off metal from the coins to make razor blades, which were then sold in Bangladesh for a profit of 12 rupees per 6 blades (a single blade in Bangladesh costs 2 rupees). As this business spread, the Reserve Bank of India (RBI) intervened and stopped the minting of the old 5 Rs coins. Instead, they started producing thinner and lighter 5 rupee coins, which could not be used to make razor blades.
Recently, there have been rumors circulating on social media that the 5 Rs coin is no longer in circulation. However, this is completely false. Any 5 rupee coin, old or new, is still valid and can be used in the market. If someone refuses to accept these coins, legal action can be taken against them. This also applies to small one rupee coins. It is important to spread this information to everyone to avoid any unnecessary confusion