What is the manufacturing cost of one rupee?

see full answer

Your Exam Success, Personally Taken Care Of

1:1 expert mentors customize learning to your strength and weaknesses – so you score higher in school , IIT JEE and NEET entrance exams.

An Intiative by Sri Chaitanya

(Unlock A.I Detailed Solution for FREE)

Best Courses for You

JEE

NEET

Foundation JEE

Foundation NEET

CBSE

Detailed Solution

According to a 2018 RTI response from the Reserve Bank of India (RBI), the cost of minting a one-rupee coin is higher than its face value — about ₹1.11 per coin. This means the government loses around ₹0.11 for every one-rupee coin produced.

Cost vs. Value

Minting cost: ₹1.11
Face value: ₹1
Loss per coin: Approximately ₹0.11

Why Production Continues

Despite the loss, one-rupee coins remain in production because they are vital for small-scale transactions and everyday use, especially where digital or higher-value payments aren’t practical. Coins are also more durable than paper currency, making them suitable for long-term circulation.

Cost of Other Denominations

Higher-denomination coins are more cost-effective to produce compared to their value:

₹2 coin — ₹1.28
₹5 coin — ₹3.69
₹10 coin — ₹5.54

While minting small coins incurs minor losses, the overall system remains balanced since larger coins and notes are cheaper relative to their denomination.

Watch 3-min video & get full concept clarity