Can you punch a hole in a coin to make jewellery?

The Coinage Act — what it covers and what it does not

Section 11 of the Coinage Act 2011 says no person shall melt or destroy any coin which is legal tender in India, or deface any coin whether it is legal tender or not. As discussed in Q14, this provision has two parts with different scopes. The melting prohibition applies to coins that are legal tender. The defacement prohibition says 'whether it is legal tender or not' — but this still refers to coins within the Republic's monetary framework.

The critical question for jewellery making is: does 'deface any coin whether it is legal tender or not' extend to British India coins, Mughal coins, and princely state coinage? The answer turns on legislative intent and scope. The Coinage Act 2011 was enacted to govern the Republic of India's coinage system. It replaced earlier Coinage Acts that governed the same system. It was not enacted to govern the coinage of the British colonial administration, the Mughal Empire, or India's historical princely states. These coins were never issued under the Republic's authority, never governed by the Republic's coinage framework, and their handling is not the subject of any provision in the 2011 Act.

Currently circulating Republic coins — full prohibition

For ₹1, ₹2, ₹5, ₹10, and ₹20 coins currently in circulation: drilling a hole, pressing into a pendant setting, engraving, or reshaping in any way constitutes defacement under Section 11. The prohibition is unambiguous. These coins are the Republic's current monetary instruments and the Coinage Act fully protects them.

Enforcement against individuals making jewellery from current coins is limited in practice. The trade in coin jewellery using modern Indian coins is visible in markets and online. But the legal position is clear, and a collector who values their standing with the law should not drill or alter current Republic coins.

Historical coins — British India, Mughal, princely state

British India coins — the annas, rupees, and fractional coins of the colonial era — were legal tender under the colonial monetary system, which did not continue into the Republic. The Coinage Act 2011 governs the Republic's system. A King George VI rupee or a Victoria quarter anna is not a coin of the Republic of India, and the Coinage Act's provisions were not written to protect it.

Mughal coins, Maratha coins, and princely state coinage were never legal tender under any law currently in force in India. They are historical numismatic objects that predate the Republic's legal framework entirely. The Coinage Act simply does not reach them.

The trade in historical coin jewellery — necklaces using old rupees, bracelets using colonial-era coins, pendants using Mughal gold mohurs — is openly conducted in markets, boutiques, and online platforms across India without legal concern.

The Antiquities Act layer — export, not making

For coins 100 or more years old, the Antiquities and Art Treasures Act 1972 adds a distinct layer of concern. Such coins are antiquities. The Act's primary enforcement concern is export: antiquities cannot be exported without an ASI licence. Using an antiquity coin in jewellery does not itself violate the Antiquities Act within India — the Act's focus is on preventing cultural heritage items from leaving the country without authorisation.

The practical caution: if you wear or carry jewellery made from a coin that is 100 or more years old and travel internationally, you may have a customs and Antiquities Act issue at the point of departure. The coin in the pendant is an antiquity. Exporting it — even incidentally as jewellery — requires an ASI licence that most individual travellers will not have.

The collector's position

Never drill, punch, or alter currently circulating Republic of India coins. The Coinage Act prohibition is clear and collecting interests align with it — an unaltered coin is worth more as a collectible than one with a drilled hole. For historical coins that you wish to incorporate into jewellery, the Coinage Act does not prohibit it. But consider whether the coin has greater value intact as a numismatic piece than it would as jewellery — for rare historical coins, the numismatic premium almost always exceeds any aesthetic benefit from incorporation into a setting.