The ₹5 coin has long been a familiar part of our daily lives in India—used for tea stalls, bus fares, and countless small transactions. But now, the Reserve Bank of India (RBI) has officially stopped the production of a specific type of this coin. This decision has sparked widespread curiosity: Why did RBI have to discontinue the ₹5 coin?
In this article, we’ll explore the full story behind this big move—why RBI was forced to act, the shocking misuse of the coin, the truth behind social media rumors, and what the new version of the coin looks like.
How Currency Coins Are Managed in India
In India, all decisions related to the design, composition, and production of coins are made jointly by the Reserve Bank of India (RBI) and the Government of India. This includes determining which metals to use, the size and weight of coins, and when to stop or start minting them.
The ₹5 coin has undergone several changes over time. But recently, RBI decided to discontinue the thicker, older version of the ₹5 coin.
Two Types of ₹5 Coins: One Stays, One Goes
You may have noticed two different types of ₹5 coins in circulation:
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Thick Coin – The older version, made mostly of brass, heavier and thicker in size.
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Thin Coin – The newer, lighter version made with a different metal mixture.
RBI has now discontinued the thicker coin. This wasn’t just a cost-saving measure—it was a response to a serious issue involving illegal activity.
The Shocking Reason: Coins Were Being Used to Make Razor Blades!
Believe it or not, the thicker ₹5 coins were being melted down and used by smugglers to make razor blades!
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One ₹5 coin could produce 6 razor blades.
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These blades were being sold for ₹10–₹12, meaning the value extracted was more than double the coin's actual value.
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This illegal practice turned a common coin into a target for criminal exploitation.
Cross-Border Smuggling: A Network Reaching Bangladesh
The situation worsened when authorities discovered that the smuggling network extended all the way to Bangladesh.
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These coins were collected in bulk and smuggled across the border.
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In Bangladesh, the metal was melted down and used to manufacture razor blades.
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The blades were then sold in various markets, sometimes even re-imported into India.
Once RBI and the government became aware of this growing issue, they immediately stopped the production of the thicker ₹5 coin.
RBI’s Legal Compulsion: The Law Behind Currency Value
There’s a specific rule in the Indian currency system:
“If the metal value of a coin becomes greater than its face value, the coin can be withdrawn from circulation.”
This was exactly the case with the thick ₹5 coin. The metal used in the coin had become more valuable than ₹5, and that made it a profitable target for misuse. This legal guideline gave RBI the reason—and the obligation—to act.
A New Coin Design: Safer, Lighter, Smarter
To counter the misuse, RBI introduced a new version of the ₹5 coin:
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Thinner and lighter than the older version.
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Made with mixed metals that are harder to melt or exploit.
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Slightly different design and structure, making it harder to counterfeit.
This new coin is being gradually introduced across the country, and is now the only official version in circulation.
Social Media Rumors: What’s True, What’s Not?
Ever since the news broke, rumors on social media have exploded:
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Some claim that ₹30 and ₹50 coins will soon be launched.
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Others say that all current coins will be replaced.
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Many videos and posts are spreading misinformation and causing confusion.
RBI has officially clarified that no such announcements have been made about ₹30 or ₹50 coins. People are advised to ignore such fake messages and wait for official updates only.
Protecting Yourself: What Citizens Should Do
In such situations, it’s important for citizens to stay alert and informed:
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Know Your Coins – Learn to identify official coins through RBI’s official resources or banks.
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Report Suspicious Coins – If you find any coin that looks fake or unusual, report it to your nearest bank.
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Don’t Forward Fake News – Avoid sharing unverified news or rumors on WhatsApp or social media.
Conclusion: The Rise and Fall of a Common Coin
The ₹5 coin was not just metal—it was a part of everyday Indian life. But when criminal networks began exploiting it, RBI had no choice but to step in. The decision to stop the production of the thick ₹5 coin was driven by legal, economic, and national security concerns.
Thankfully, the new coin remains in circulation, continuing to serve the people in a safer and smarter way.
What Do You Think?
Have you noticed the difference between the old and new ₹5 coins? Were you aware of the razor blade racket behind this change? Share your thoughts in the comments below—and spread the truth to help others stay informed!
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