Know why 5 rs coin was smuggled to Bangladesh:
Old 5 Rs Coin
Did you notice that the old Rs 5 coins have become rare nowadays? The ones we used to have were made of Cupro-Nickel, weighed 9.00 grams, and were circular. But now, if you take a look at the new Rs 5 coin in your wallet, you might feel that it’s lighter and thinner. Wondering why this sudden change happened and why the old coins disappeared?
5 rs coin
Well, the Reserve Bank of India decided to stop using the old Rs 5 coin because some people were smuggling them to Bangladesh illegally. These old coins were made of metals, and smugglers were exporting them in large quantities to Bangladesh. In Bangladesh, they would melt the coins and turn them into razor blades. Surprisingly, one coin could be turned into six blades, each of which could be sold for Rs 2.
5 rs coin
When the government found out about this, they took quick action. The Reserve Bank of India made the new 5 rupee coins thinner and used cheaper metals to make it difficult for smugglers to use them for making razor blades. Even if the new coins were exported, smugglers couldn’t make a profit.
5 rs coin
It’s interesting to know that the value of a coin has two parts: the surface value and the metal value. The surface value is what the coin is worth, like the 5-rupee coin being worth 5. But the metal value is about the cost of the metal used to make the coin. The metal value changes with the market price of the metal. So, the old Rs 5 coin had a higher metal value than its surface value, and that’s why smugglers were taking advantage of it.
FAQs:
Q1: Why did the appearance of the Rs 5 coin change?
The Reserve Bank of India changed the appearance of the Rs 5 coin to prevent illegal smuggling to Bangladesh. The old coins were being melted down and turned into razor blades, which led to a decrease in their circulation in our country.
Q2: What is the difference between the old and new Rs 5 coins?
The new Rs 5 coins are thinner and lighter than the old ones. The metal content was also altered to include cheaper elements in the market, making it harder for smugglers to use them for unauthorized purposes.
Q3: How were the old Rs 5 coins being misused?
Smugglers were exporting the old Rs 5 coins in large quantities to Bangladesh, where they were melted down and shaped into razor blades. A single coin could be used to make six blades, each of which could be sold for a profit.
Q4: Why did the government take action against the old Rs 5 coins?
The government took action to curb illegal activities. The smuggling of old Rs 5 coins to make razor blades was affecting the circulation of the coins in India.
Q5: What determines the value of a coin?
The value of a coin has two aspects: surface value and metal value. The surface value is the nominal value of the coin (like Rs 5), while the metal value is determined by the cost of the metal used in its production.
Q6: Can the new Rs 5 coins be used for the same illegal purposes?
The new Rs 5 coins are designed to make it difficult for smugglers to misuse them. They are thinner and made with a different metal blend, reducing the likelihood of being melted down and repurposed for illegal activities.
Also Read:
