Demand for coins goes up on Vishu eve

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As Vishu, the old Malayalam New Year is just two days away people are queuing up in front of the Reserve Bank of India (RBI) counter here to collect fresh coins and currency notes.

Elders giving new coins or fresh currency notes known as kaineettam to all family members is part of the festival ritual. Giving Kaineettam is a symbol of sharing one’s prosperity and wealth.

The RBI has been issuing coins worth about Rs 6 lakhs a day over the last week. There is also a rush for fresh currency notes. “For the past week 1,300 to 1,500 people on an average, came to us for new coins and fresh notes. We've been distributing coins worth about `6 lakhs a day,” said RBI sources.

The highest demand is for the new gold coloured Rs 5 coin as it constitutes 50 per cent of the total amount of coins distributed a day. RBI sources said that there was generally no cap on the issuance of fresh notes and new coins.

"But we have brought in some restrictions this Vishu season since we want to ensure that coins and currency notes are equally distributed,’’ sources said.

During normal days, RBI distributes coins worth about Rs 2.5 lakhs a day. There is a huge rush for fresh currency notes, especially notes in the denominations of Rs 10, Rs 100, Rs 500 and Rs 1,000.

People prefer to get currency in high denominations from the RBI in order to avoid the risk of getting fake notes. During the last week, the RBI has issued fresh currency notes amounting to Rs 7 lakh a day.

There is, of course, a huge demand for new five rupee notes. However, the RBI is not issuing this denomination as it's in scarce supply. RBI doesn't stock coins or currency notes. It indents for these depending on demand.