Govt replaces cupro-nickel coins by steel coins

New Delhi, Aug 14 (UNI) The government today assured that the shortage of coins in some parts of the country would be overcome within six weeks as several corrective measures including changing the metal used in the coins, had been taken.

Finance Minister P Chidambaram told the Rajya Sabha during Question Hour that the coins which were earlier made of copper and nickel, would now be made of ferro-stainless steel.

This had been done to stop some unscrupulous elements from hoarding and melting the coins for their metal value which created a shortage in many parts of the country.

The new metal--FSS--would not have any value even if it is molten and therefore, there would not be any profitability in its hoarding or melting.

He said some such incidents of melting had come to the government's notice and the RBI had initiated action. However, action against the unscrupulous elements was under the purview of the state governments and the law and order agencies under the central government.

The Finance Ministry had directed the RBI to take adequate precautions.

To another question, he said there was adequate inventory of coins in the mint and there was no shortage.

However, in past few years, there was a reverse flow of coins into the currency chest. This imbalanece in demand and supply had now been corrected and there was now positive flow.

''The shortage will be addressed over the next six weeks,'' he added.

UNI