Reason Behind Possible Discontinuation of Rs10 Banknote Emerges

ISLAMABAD: The State Bank of Pakistan (SBP) is considering a proposal to discontinue the Rs10 banknote in the future and introduce a Rs10 coin instead, with the cost of producing the low-denomination note cited as the main reason.

The matter was discussed during a meeting of the Senate Standing Committee on Finance, where the State Bank proposed stopping the printing of Rs10 banknotes in the future and replacing them with coins of the same denomination.

SBP Deputy Governor Inayat Hussain told the committee that the current cost of producing a Rs10 banknote had become higher than its face value. For this reason, the central bank has recommended using a Rs10 coin instead of continuing to print the banknote.

Officials said coins generally have a longer lifespan than paper currency, making them more suitable for lower denominations. The move could also help reduce the recurring cost of printing replacement banknotes.

However, the proposal, if approved, would not mean that all existing Rs10 banknotes would immediately become invalid or unusable.

The future status of the existing Rs10 banknote will depend on approval by the relevant authorities and the implementation plan adopted by the State Bank. Citizens therefore do not need to worry about the notes currently in their possession.

The State Bank has previously introduced a Rs10 coin, but its use and public acceptance did not become as widespread as expected.

The current proposal to discontinue the Rs10 banknote is primarily aimed at reducing currency production costs and making the cash system more efficient. The practical implementation will become clear once a final decision is taken by the relevant authorities.