2016-06-14 Tue

Back in 2009, Indian RBI was facing a rather strange issue. 5 rupee coins were smuggled to Bangladesh for making razor blades. The then RBI Executive Director H R Khan stated that they would change the metallic content of the cupronickel coin so that melting and processing them becomes more difficult. Investigations revealed that as many as six razor blades can be made from a 5 Rs. Coin. Each blade was sold for 2 rupees, making it a lucrative illegal business.

Security was tightened and strict actions were taken against those who indulged in such crimes. Such smuggling activities also resulted in a sudden shortage of coins as per bank officials. To counter the shortage, coins were then distributed through post offices as well.