It is advisable to be cautious when making online transactions related to old coins and notes - FACTLY
Sai Krishna Muthyanolla
March 21, 2024
Several posts (here, here, & here) claiming that individuals possessing specific types of old coins and currency notes (such as one Rupee note, Rs.5 notes with a Tractor image, coins with Vaishno Devi images, etc.) can earn lakhs of rupees by selling them are being widely shared across social media platforms. In this article, let’s fact-check the claims made in these posts.
Claim: People can earn lakhs of rupees by selling old coins and currency notes.
Fact: E-commerce sites like India Mart, Quikr, Earn Money, Coin Bazaar, and OLX facilitate brisk business in old coins and notes. These platforms serve solely as intermediaries in this trade, without involvement in actual buying or selling. They hold no responsibility for any transactions or fraudulent activities in this sector. Therefore, exercising caution is advisable when engaging in such transactions. In August 2021, the Reserve Bank of India also issued a press release warning against online buying and selling of old coins and notes. According to reports, there have been numerous instances where the public has been cheated in the name of purchasing old coins. Hence, the claim made in the post is MISLEADING.
To verify the accuracy of the viral claim, we conducted a relevant keyword search on the internet, which led us to several reports. According to Zee News articles (here, here), old coins and notes are being auctioned on many websites. The article states that the Rs. 5 or Rs. 10 coins issued by the RBI in 2002 with Vaishno Devi’s photo are worth up to Rs. 10 lakhs in online auctions. Similarly, Rs. 5 currency notes with tractor images can earn lakhs in online auctions. However, at the end of the article, it mentions that the RBI has warned against the sale and purchase of old coins and notes online.
Similarly, TimesNow and News18 also mentioned websites that auction old currency notes and coins with specific features, such as coins with the number 786 and coins with Vaishno Devi images, etc. However, these articles also mention the RBI’s warning against the sale and purchase of old coins and notes online. According to reports, before proceeding with an exchange, you should verify whether the websites actually offer the amount mentioned for a particular note/coin. Also, there are times when no such exchange offers are made by the websites.
Subsequently, we also came across the press release from the Reserve Bank of India (RBI) in August 2021, warning about the sale and purchase of old coins and notes online. The RBI press release stated, “It has come to the notice of the Reserve Bank of India that certain elements are fraudulently using the name/logo of the Reserve Bank of India and seeking charges/commissions/taxes from the public in transactions related to buying and selling of old banknotes and coins through various online/offline platforms. It is clarified that RBI does not engage in such matters and never seeks charges/commissions. RBI has also not authorized any institution/firm/person, etc., to collect charges/commissions on its behalf in such transactions. RBI advises members of the public to remain cautious and not to fall prey to elements using the name of the Reserve Bank of India to extract money through such fictitious/fraudulent offers.”
Collecting old coins and currency notes is a hobby for some people, while others collect them as mementoes. Some individuals gather these old coins from various regions within the country and even from other countries. Regardless of the cost, they pursue their passion without hesitation. Occasionally, events are organized involving these collections, not only in India but also worldwide. Sometimes, people hold auctions for these collections of antique coins and notes, and they may receive a huge amount of money in auctions (here, here, & here).
It’s important to note that while certain old or rare banknotes and coins may have collector’s value, the buying and selling of such items typically occur in the numismatic or collectors’ market rather than through official government channels. E-commerce sites like IndiaMart, Quikr, Earn Money, Coin Bazaar, and OLX engage in brisk business involving old coins and notes. These e-commerce websites serve as platforms for this business, acting solely as third parties. They have no involvement in the buying and selling process and are not responsible for any transactions or frauds within this business. Therefore, it is advisable to exercise caution while engaging in such transactions. According to reports (here & here), there are many instances where the public has been cheated in the name of buying old coins from them. IndiaMart refuted claims that people could earn lakhs of rupees by selling old coins on the B2B online marketplace.
To sum it up, it is advisable to be cautious when making transactions related to such old coins and notes online