Shillong:
With five rupee coins being smuggled into Bangladesh for making razor blades, the RBI has decided to change its metallic content.
"This (smuggling) has been going on for quite some time now. We are looking into it," RBI Executive Director H R Khan said, when asked to comment about the smuggling of the coins to the neighbouring country.
Six razor blades can be made from a single Rs five coin. Each blade sells for Rs 2, police sources said.
Khan said the metallic content of the 5 rupee coins are now being changed. "We are now changing the metallic content of the Rs 5 coin so that the new ones will not be lucrative for melting.
The new metallic content of the cupronickel coin will reduce its attractiveness for smugglers," he said.
The RBI was also coordinating with the police and other authorities to ensure that coin smugglers do not have a free run.
Periodic instructions were being been given to security and intelligence agencies to check the menace, Khan said.
Bank officials said the smuggling has also contributed to the shortage of small coins.
"We are aware of the problem and the RBI is taking initiatives. We are trying to distribute coins through post offices. We have also told the banks to distribute an adequate number of coins," Khan said.
"This (smuggling) has been going on for quite some time now. We are looking into it," RBI Executive Director H R Khan said, when asked to comment about the smuggling of the coins to the neighbouring country.
Six razor blades can be made from a single Rs five coin. Each blade sells for Rs 2, police sources said.
Khan said the metallic content of the 5 rupee coins are now being changed. "We are now changing the metallic content of the Rs 5 coin so that the new ones will not be lucrative for melting.
The new metallic content of the cupronickel coin will reduce its attractiveness for smugglers," he said.
The RBI was also coordinating with the police and other authorities to ensure that coin smugglers do not have a free run.
Periodic instructions were being been given to security and intelligence agencies to check the menace, Khan said.
Bank officials said the smuggling has also contributed to the shortage of small coins.
"We are aware of the problem and the RBI is taking initiatives. We are trying to distribute coins through post offices. We have also told the banks to distribute an adequate number of coins," Khan said.
