Shopkeepers Begging for Coins from Beggars

In Calcutta city in West Bengal state of India shopkeepers are begging for coins from the beggars and buying coins at prices above their face value. Reason, there is sudden shortage of coins in this city of 14 million.

Reserve Bank of India has resorted to the emergency measures, distributing millions of coins to satisfy the demand.

Since the coin shortage became acute at the beginning of June, the bank has distributed nearly 5 million rupees (US$121,950; Euro 91,664.16) worth of coins, including one million on Thursday alone, said Nilanjan Saha, the bank's treasurer in the city.

But the emergency supplies have failed to appease the demand & nearly 2,000 people stood in two lines on a recent day at the bank to exchange currency notes for coins, many planning to resell them for a profit.

One woman, who asked not to be named, set up shop outside the bank selling packets of 100 rupee coins for 120 rupees.

"It may sound strange, but we have found that beggars are a good source of coins," said Mum Poddar, who runs a small shop selling stationary.

Bank officials said they were mystified by the shortage.

"There is no reason," said Saha. "But I have heard reports that some unscrupulous traders were melting coins because the face value of the coins are lower than the metal value."

The bank was also investigating claims the coins were being melted down to make razor blades.

There are "reports that as many as six blades can be made from one single one rupee coin," said bank security officer Subal Chandra Naskar.

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