Online edition of India's National Newspaper
Thursday, Jun 30, 2011
ePaper | Mobile/PDA Version
Google



Kerala

News: ePaper | Front Page | National | Tamil Nadu | Andhra Pradesh | Karnataka | Kerala | New Delhi | Other States | International | Opinion | Business | Sport | Miscellaneous | Engagements |
Advts:
Retail Plus | Classifieds | Jobs | Obituary |

Kerala - Kochi Printer Friendly Page   Send this Article to a Friend

Goodbye to small change

R. Ramabhadran Pillai

50 paise now set to occupy a unique position in decimal coinage system



Coins of 25 paise and smaller value will cease to be legal tender from July 1, 2011.

KOCHI: June 30 will be the last day in the life of coins of 25 paise and lower denominations.

The smaller coins will cease to be legal tender from July 1, as per an announcement already made by the Reserve Bank of India (RBI). Along with this, the 50 paise coin will assume the role as the only one in the decimal coinage system.

The history of the 25 paise dates back to the introduction of the decimal system of coinage in the country in the 1950s. Earlier, the rupee had been divided into 16 annas in the coinage system. The 25 paise coin was launched in place of the ‘char anna.'

The first coinage of the Republic of India (RBI) was introduced on August 15, 1950 when the British King's portrait was replaced by the ‘Lion capital of the Ashoka pillar,' according to RBI sources.

A corn sheaf replaced the tiger on the one-rupee coin. Indian motifs were incorporated on other coins as well. The monetary system continued with one rupee, consisting of 16 annas.

The Indian Coinage Act was amended in 1955 to adopt a metric system for coinage. The Act came into force in 1957. The rupee was divided into 100 ‘paisa' instead of 16 annas. The new decimal paisa was termed ‘naya paisa.' The naya paisa series continued till 1964 when the term ‘naya' was dropped.

Small denomination coins were initially made of bronze, nickel-brass, cupro-nickel, and aluminium-bronze and these were later changed into aluminium.

Considering the increase in the metallic value of certain coins rising above the face value, minting of coins of lower value such as 1 paisa, 2 paise and 5 paise were discontinued eventually. Stainless steel coins of 10, 25 and 50 paise value were launched in the 1980s. Of late, though 10 paise coins continued to be legal tender, they virtually went out of circulation in the money market.

The ‘char anna' which transformed into the 25 paise was worth many a commodity in the years gone by. The phasing out of smaller coins marks the end of an era, signifying the inflationary trends that impact the market. With the downfall of the smaller coins, the 50 paise coin is all set become the lone ranger in the decimal coinage.

Printer friendly page  
Send this article to Friends by E-Mail



Kerala

News: ePaper | Front Page | National | Tamil Nadu | Andhra Pradesh | Karnataka | Kerala | New Delhi | Other States | International | Opinion | Business | Sport | Miscellaneous | Engagements |
Advts:
Retail Plus | Classifieds | Jobs | Obituary | Updates: Breaking News |


News Update



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | Publications | eBooks | Images | Ergo | Home |

Copyright 2011, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu