Why did RBI stop creating the old Rs 5 coin in 2018?

Generally, we use Rs 5 coins which are somewhat gold-coloured, featuring symbols of India’s 75 years of independence and prominent figures.
But, have you ever thought that why the old-robust 5 rupees coin stopped entering the markets after 2018? There is a slight difference in the weight of the coin also. Now, you might be wondering about the reason behind this sudden change in the appearance and circulation of the thick Rs 5 coins.

RBI stopped the old Rs 5 coin after facing a major challenge when thick Rs 5 coins were being smuggled into Bangladesh, where they were melted down to make razor blades.
One single coin could be turned into six-blades, which were sold for Rs 2 each resulting in a profit of Rs 7 per coin. When the government came to know about this problem, they took action by changing the appearance and metal content of the 5 rupee coin.

Small-scale industries in Bangladesh began using Rs 5 coins to make various items, including razor blades, earrings, necklaces, and bracelets. RBI uses ferratic stainless steel and nickel to make Rs 1, Rs 2 and Rs 5 coins. This metal was used to make labels for the razor blades.
This coin smuggling trend has been detrimental to the RBI and the overall economy.

Meanwhile, the Indian government stopped the production of Rs 5 coins on January 8, 2018.