Seigniorage - Definition - Law Dictionary Home Dictionary Definition seigniorage

Definition :

Seigniorage, a royalty or prerogative of the Crown, whereby an allowance of gold and silver, brought in the mass to be exchanged for coin, is claimed.Seigniorage, has two distinct meanings (i) profit made by a Government by issuing currency, the Crown's right to charge a percentage on bullion brought to a mint for coining; and (ii) something claimed by a monarch or feudal lord as a prerogative, Divisional Forest Officer v. Tata Finlay Ltd., AIR 2001 SC 2672. [See Kerala Grants and Leases (Modifications of Rights) Act (16 of 1980), s. 4]

Means profit made by a Government by issuing currency; the difference or margin between the face value of coins and their production costs; the crown's right to charge a percentage on bullion brought to a mint for coining; the amount charged, something claimed by a monaonch or feudal lord as a prerogative, Divisional Forest Officer v. Tata Finlay Ltd., (2001) 5 SCC 684.