Will the Five-Rupee Coin Be Discontinued? Here's What We Know

In the country, we have two kinds of five-rupee coins. One is made of brass, and the other is made from a heavier metal. Lately, though, the heavier coin has been showing up less and less.

The Reserve Bank of India (RBI) has the authority to print new coins and notes in the country, a decision that was made before 2025. The process unfolds in two stages:

First, the RBI proposes to the central government that it print new notes and coins. Subsequently, the central government arrives at a decision after consulting with senior officials and economists from the RBI, and the RBI is granted permission to print coins and notes. A similar procedure is followed when a note or coin is to be discontinued.

Currently, there are rumours circulating online that the five-rupee coin will be discontinued. Let’s take a closer look at this news to find out what’s going on.

In the country, we have two kinds of five-rupee coins. One is made of brass, and the other is made from a heavier metal. Lately, though, the heavier coin has been showing up less and less.

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Neither the central government nor the Reserve Bank of India is producing the thicker five-rupee coins.

You’ll mostly come across the brass ones in circulation.

At present, reports are circulating online suggesting that the circulation of the five-rupee coin may be discontinued. Let us explore this information further to gain a clearer understanding.

The country has two varieties of five-rupee coins in circulation: one crafted from brass and the other made from a denser metal. However, the distribution of denser coins has seen a notable decline recently.

Neither the central government nor the Reserve Bank of India is issuing five-rupee coins made of the thicker metal. Brass coins are predominantly available on the market.

A key factor contributing to the cessation of the thick five-rupee coins is that the metal utilized in their production can be repurposed to create four to five blades with a market value exceeding Rs 5. This economic consideration prompted the government and the Reserve Bank of India to phase out these five-rupee coins.

As per the rule, if the production cost of any currency exceeds its face value, those coins or notes will be withdrawn from circulation. For example, if someone were to melt down a five-rupee coin to manufacture five blades and sell them for Rs 2 each, resulting in a total revenue of Rs 10, the value of the metal in the coin would be greater than its face value. This economic rationale, among others, influenced the RBI’s decision to discontinue the production of specific coins, including the thicker five-rupee coin.

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