5 Rupees Coin to be Introduced in New Design

The Nepal government has granted Nepal Rastra Bank the authorization to mint 150 million 5 rupee coins. This decision was reached during a Council of Ministers meeting on Tuesday, where approval was given for the minting of the specified quantity of coins.

Currently, the minting division of Nepal Rastra Bank is primarily focused on producing 1 rupee and 2 rupee coins. However, the central bank is now preparing to introduce 5 rupee coins into the market.

In accordance with the 'Guidelines for Note Printing and Coin Minting, 2065-First Amendment, 2075,' issued by Nepal Rastra Bank, the minting of newly designed coins necessitates prior approval from the Government of Nepal.

While the re-minting of coins in the old design requires endorsement from the Board of Directors of the Nepal Rastra Bank.

The new 5 rupee coin will feature a fresh design. He emphasized that the coin's new design will showcase Nepal's cultural heritage, and it will also incorporate a representation of the national animal.

It's worth noting that 5 rupee coins were previously in circulation within Nepal.

Though Nepal Rastra Bank currently prints 5 rupee notes, it refrains from minting coins of this denomination. This shift towards coin minting is prompted by the relatively shorter lifespan of 5 rupee notes and the higher cost associated with their printing.

The central bank's intention is to promote the usage of coins for small transactions. The aim is to enable people to make purchases in the market using coins, even for low-value items. He confirmed that the plan encompasses the introduction of not only 5 rupee coins but also coins with higher denominations.

While the lifespan of paper notes ranges from 1 to 3 years, coins tend to remain in circulation for extended periods, often up to 40 years. This prolonged circulation helps reduce costs associated with reissuing currency.

The declining purchasing power of 1 and 2 rupee coins has necessitated the introduction of 5 rupee coins into circulation. Considering the current scenario, coins up to 50 rupees should be introduced.

While notes and coins will coexist for the time being, the long-term vision involves gradually replacing lower denomination notes with coins.