Seigniorage is the difference between the presumptive value of cash, for example, a Rs 100 greenback, and the expense to create it.
In simpler words, difference between the face value of coins and their production costs.
Seigniorage might be considered income for an government authority when the cash it makes is worth more than it expenses to deliver
In few circumstances, the creation of money can bring loss rather than an increase for the authority making the cash. This loss is all the more normally experienced in the creation of coins on the grounds that the metal used to deliver the coin has inalienable worth.
This worth, regularly called the melt value might be higher than the division it initially spoke to; or, when joined with creation costs, may bring about a misfortune.