From ₹1 Coin to ₹500 Note: How Much Does India Spend on Currency Production?

Every coin and note in India comes with a production cost, which often exceeds its face value. While coins are expensive to mint, printing notes also involves substantial expenditure. Here’s a detailed look at how much the government spends to produce coins and currency notes.

Who Makes Coins and Notes?

• Coins: Minted by the Government of India at Mumbai and Hyderabad mints.

• Notes: Printed by the Reserve Bank of India (RBI), via its subsidiary RBI Note Printing Pvt. Ltd. at two currency presses.

Coin Production Costs

Even though ₹1 coins seem small, their emotional and practical significance remains high. Introduced in 1992, these coins cost more to produce than their face value. According to 2018 RTI data:

Coin Value	Production Cost
₹1	₹1.11
₹2	₹1.28
₹5	₹3.69
₹10	₹5.54

• Coins are made from stainless steel.

• Example: ₹1 coin – diameter 21.93 mm, thickness 1.45 mm, weight 3.76 grams.

• Production costs have likely increased since 2018 due to inflation.

Minting Decline:
The number of coins produced has fallen over the years, likely due to the rise of digital payments like UPI.

• ₹1 coins minted: 90.3 crore (2017) → 63 crore (2018)

Note Printing Costs

RBI prints notes from ₹2 to ₹500 (and previously ₹2000). Costs vary based on denomination:

Note Value	Cost per 1,000 Notes	Cost per Note
₹10	₹960	₹0.96
₹100	₹1,770	₹1.77
₹200	₹2,370	₹2.37
₹500	₹2,290	₹2.29
₹2000	—	₹4 (discontinued)

• ₹2000 notes, introduced post-demonetization, cost around ₹4 per note, but printing has stopped and they are being gradually phased out.

Key Takeaways

• Coins cost more than their face value to produce, especially smaller denominations.

• Printing higher-value notes is cheaper relative to their face value, making currency notes cost-efficient for the government.

• Digital payments are reducing coin usage, which may decrease production costs over time.