Wednesday, December 31, 2008

Will the Paisa go the Farthing way?

A "farthing" was a British coin worth one fourth of a penny. The farthing was continued to be used until 31 December 1960.With the growing rates of inflation it seems the paisa may go the farthing way. I have come across many vendors who refuse to accept 25 paisa coins, let alone 20, 10 or 5 paisa coins.So is it time for these coins to be removed from circulation? Are they actually useful?

Australia and New Zealand removed their 1 and 2 cent coins in the early1990s. In 2006, Newzealand went ahead and demonetized the 5 cent coins as well.

The 25 paise coin with the a Rhinoceros was issued in 1994, while aluminium20 paisa coin has 1988, the stainless steel 10 paisa has 1988. The square 5paisa is surprisingly from 1993.Even the latest of these coins are more than a decade old.

The Indian Coinage lists the 10 paisa and 25 paisa as part of the Contemporary Coins. Although 25 paisa may still hold its utility. The 10 paisa may have outlived its useful life.

No comments: