Parliament gives nod to Rs 1,000 coins

Parliament on Thursday permitted the government to mint coins of Rs1,000 denomination even as nostalgia over withdrawal of 25 paise coins(chawani) was witnessed among Rajya Sabha members.

The Coinage Bill, 2009 passed by the Upper House, limitspayment by an individual through coins up to Rs 1,000, Finance Minister PranabMukherjee said, replying to a debate on it.

The Lok Sabha had passed the bill without discussion inMarch.

Mukherjee said the payment and receipt by way of coins wasbeing limited to Rs 1,000 by an individual, as suggested by the Reserve Bank,for sake of convenience.

Replying to concerns of counterfeit notes, the Ministeragreed there was a serious threat. While it was a battle the government was tofight continuously, some countries are using it as a potential tool todestablise the Indian economy, he said.

"Some times it is used as a policy matter. I do notwant to use the names of the country. Everybody is aware of...what is theirobjective," he said.

Though the Finance Minister did not name any country,concerns have often been expressed over fake currency coming from Pakistan routed through Nepal.

On the Rs 1,000 coin, Mukherjee said at present it is onlyan enabling provision being inserted in the coinage law. He did not indicatewhen it could be introduced.

While the Finance Minister shared members' nostalgia overwithdrawal of 25 paise coin (chavani), he said it was part of an economicevolution. There used to be coins in the sub-unit of a paisa in the past.