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Coins can tell the story of the economy of any country. How big is the amount of coins in your pocket and whether they are still in circulation, this shows what is the situation of inflation in your country. Let us try to understand it in detail.
The box of old coins lying in every house, right? That box is not any junk, it is the real history of inflation of the last 70 years, brother! From 1957 to 1975, small coins were the real heroes.
Kulfi, bus ticket, tea, everything could be bought for 1 paisa, 2 paisa, 3 paisa, 5 paisa. At that time inflation was very low, so even small coins were of great use. 1980-90 era. The smallest coins started disappearing. Now no one would take even 1 paisa or 2 paisa. Inflation killed them.
2000 to 2011 – Other small coins also died out – 5 paisa, 10 paisa, 20 paisa, 25 paisa all stopped. In 2011, the government said, “Anything below 50 paise will no longer be acceptable.” That means inflation has destroyed them forever.
Earlier the coins were big, heavy and made of good metal, now they have become small and cheap. The 10 paisa coin of 1970 was bigger than today’s 10 rupee coin! Now iron is made to look like stone because even good metal has become expensive.
Now in 2025, even Rs 1 and Rs 2 coins are on the verge of dying – the auto seller, the vegetable seller says – “Don’t give Rs 1-2, brother, give the higher amount or do UPI.”
In India, 1 paisa of 1957 is junk today because inflation killed it, but in Japan, 1 yen of 1957 is still in circulation. In Switzerland, 5 Rappen (≈5 pennies) and in Denmark 50 Orre (½ krone, ≈35 rupees) are still accepted in shops. This means that small coins are still alive only where inflation has been kept under control in the last 60-70 years!
The poor suffer the most due to the shortage of small coins – the laborer, street vendor, villager who still uses cash has to pay the higher price. This is a hidden tax of inflation on the poor.
UPI averted a big disaster – If UPI had not been there then today people would have been fighting every day for tea worth Rs 7 and vegetables worth Rs 23. UPI hid the death of small coins.
The last chapter is going to come by 2030-2035, the day even Rs 1 and Rs 2 coins will be discontinued, understand that out of 100 paisa of 1957, 99 paisa will be dead forever.
