Have you ever thought about how much it costs to manufacture a one-rupee coin? (Ek Rupee Coin ka Manufacturing Cost Kitna Hoga?). We use ₹1 coins every day, but do you know that making them often costs more than their actual worth? From metal procurement to minting and distribution, several hidden expenses go into making just one coin. In this article, we will examine the real cost of making a one-rupee coin.
About the ₹1 Coin
| Material | Stainless Steel |
| Diameter | 21.93 mm |
| Thickness | 1.45 mm |
| Weight | 3.76 gm |
Key Factors Affecting the Manufacturing Cost of a ₹1 Coin
Making a ₹1 coin generally involves three different types of costs.
- Raw Material Cost: One-rupee coins are typically made from stainless steel or other metal alloys. Their cost fluctuates with global metal market prices.
- Minting Charges: The coins are made in government-run mints using high-precision machines. This process needs electricity, regular maintenance, and skilled workers.
- Packaging, Distribution & Security: The cost of securely transporting coins across the country also adds up.
Cost of Making a ₹1 Coin
According to the disclosure that was made by the RBI in 2018 in response to an RTI, the average cost of making a ₹1 coin is ₹1.11. However, this cost was in 2018, and now we are in 2025, so let’s find out the current cost of making a ₹1 coin.
| Raw Material Cost | ₹0.70 – ₹0.90 |
| Minting Charges | ₹0.30 – ₹0.45 |
| Packaging and Distribution | ₹0.10 – ₹0.20 |
| Total Cost | ₹1.10 – ₹1.55 |
Who mints the ₹1 Coin?
The Indian government prints one-rupee note and all coins. All these coins are produced by the Indian Government Mints (IGM) in Hyderabad, Kolkata, Noida, and Mumbai. These mints are operated by the Security Printing and Minting Corporation of India Limited (SPMCIL).
Will the ₹1 Coin Be Discontinued in the Future?
Many countries, like Canada, have discontinued low-value coins due to rising production costs. In India, ₹1 coins are still heavily used, especially in rural and small-town markets. For now, the Indian government has no official plan to stop minting ₹1 coins. But we may see changes in design, size, or material to control costs better.
A Brief History of ₹1 Coin Manufacturing in India
The ₹1 coin was first introduced during British rule. These coins had the portrait of the British monarch (e.g., Queen Victoria, King George V/VI). In 1950, India issued its first Republic coins with the Lion Capital of Ashoka.
| Period | Material Used | Features |
|---|---|---|
| Pre-1947 | Silver | Highly valuable due to high silver content |
| 1950s–1960s | Nickel | Durable but expensive |
| 1970s–1980s | Cupro-nickel | Copper + Nickel alloy |
| 1992–2004 | Ferritic Stainless Steel | Cost-effective, magnetic |
| 2004–Present | Ferritic Stainless Steel | Continued use with modern designs |
FAQ’s
Who prints the Indian currency?
The Reserve Bank of India (RBI) is responsible for printing banknotes ranging from 2 rupees to 500 rupees, while the one-rupee note and all coins are printed by the Indian government.
What is the cost of making a ₹2 coin?
The cost of making a ₹2 coin is ₹1.28.
What is the cost of making a ₹5 coin?
The cost of making a ₹5 coin is ₹3.69.
What is the cost of making a ₹10 coin?
The cost of making a ₹10 coin is ₹5.54.
How much does it cost to print a note?
The cost of making a 10-rupee note is ₹0.96, a 100-rupee note is ₹1.77, a 200-rupee note is ₹2.30, and a 500-rupee note is ₹2.29.
Does the government lose money making ₹1 coins?
Yes, the government can lose up to 50 paise on each one-rupee coin. This is known as ‘seigniorage loss’, and it happens when the cost of minting the coin exceeds its face value.
What is the composition of the ₹1 coin?
The ₹1 coin is made up of stainless steel (Ferritic Grade), which contains (Iron: 83-84%, Chromium: 11% and Nickel: 4-5%).
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