The federal government has initiated discussions on replacing the Rs10 note with a coin, a move projected to save Rs40–50 billion over the next decade.
A high-level committee led by the Finance Minister has submitted a currency management report recommending the shift, highlighting the short lifespan of notes compared to durable coins and potential long-term cost savings.
The report, prepared under the State Bank and Security Printing Corporation laws, notes that the average lifespan of a Rs10 note is only 6 to 9 months, whereas a Rs10 coin can last 20 to 30 years. Approximately 35% of the total notes printed annually are Rs10 notes.
By introducing a coin, the government could save Rs40–50 billion over a decade, considering that printing, replacement, and administrative costs for Rs10 notes are estimated at Rs8–10 billion per year.
While the initial cost of minting coins is higher, they do not require frequent replacement over decades. The State Bank plans to phase out Rs10 notes over three years.
The Rs10 coin was first issued nationally on October 24, 2016. Several countries, including the UK, Canada, and Australia, have already replaced low-denomination notes with coins, contributing to greener banking practices.
