Coin shortage may be eased

PANAJI: Razor blades and public calloffices are the cause of the shortage of coins in Goa. Officials of the StateBank of India, Treasury branch said, "The shortfall of coins has arisen becauseof blade manufacturers, hoteliers, super centres and grocery stores. Blademanufacturers extract the steel in the coins and use this for manufacturingrazor blades." Restaurants, super centres, grocery stores hoard coins to use attimes when these are scarce. The stowing of the Re one coins in the telephonecoin box is another cause of the shortfall.SBI officials said, "Thecoin shortage is a manmade one. There is a huge demand for these coins as it ischeaper to procure and the premium one pays is relatively less. The coins havestainless steel, which is extracted and used in the production of razor blades.The procured coins are melted and the required metal extracted. "TheReserve Bank of India on their part, has finally decided to plug the shortfalland put an end to woes of consumers. On May 7, the RBI remitted coins worth Rs80 lakh to Goa. Consumers will no longer have to accept sweets or coupons fromshopkeepers instead of coins. According to the chief manager, State Bank ofIndia Treasury Branch, R P Lingudker, "For now the RBI has been able to plug theshortfall, but, we cannot say for how long this will last."A cashierat the Goa Sahakari Bhandar said, "We have been facing a coin shortage for overa year. We have no other alternative but to give consumers sweets and coupons.Sometimes customers get angry and give us trouble but over time they haverealised we are not at fault and we have not faced much problem. Goahas been facing a coin shortage for the past one and a half year. Despiterepeated appeals to the RBI, the Reserve Bank has been unable to fill in theshortfall. According to bankers, "The suppliers from where the RBI sources theircoins could be the problem for the shortfall. Suppliers have been unable tofulfil the order placed." The coins are sourced by the RBI fromHyderabad.Cashing on the coin crunch in the state are taxis andrickshawallas who get the opportunity to fleece their customers. Betty Fernandesan affected customer said, "If I tender a Rs 20 note to pay a fare of Rs 18.50,the rickshawalla will invariably say he has no change and pocket the entire Rs20. We stand to loose and have nothing to say."Domnica Crasto, aregular shopper, also peeved by the coupons and sweets being tendered said, "Ifwe give shopkeepers sweets and coupons in exchange will they accept? It isalways the consumer who is affected by the shortfall."Economist areof the opinion that, "Instead of plugging the loopholes or changing the metalsused in the manufacturing of coins, the RBI is pumping in coins which in turnwill increase the spending power of people and will affect the growingexpenditure per person." RBI, lawmakers and implementers should take theinitiative and try and solve the shortfall issue, they say.The SBIon their part will be opening a counter to tender coins. Lingudker said,"Certain establishments will be issued coins in the denominations of Re 1, Rs 2and Rs 5. This will take care of Mapusa, Panjim, Canacona, Bicholim, Ponda,Vasco and Margao. Some of the establishments which will get relief in Panaji areCafe Bhosle, Gujarat Lodge, Modern Bakers, Pastry Cottage and CafeCentral.