In the context of economics Seigniorage is best defined as ........

Indian Economic System(CSC) Money and banking

In the context of economics, Seigniorage is best defined as

The environmental costs unaccounted for in producing goods and services in an economy.

The delivery of financial services at affordable costs to disadvantaged and low-income segments of society.

The difference between the value of currency/money and the cost of producing it.

The damaged currency notes and coins which are in circulation

Seigniorage is the difference between the value of money and the cost to produce it — in other words, it's the economic cost of producing a currency within a given economy or country. If the seigniorage is positive, then the government will make an economic profit; a negative seigniorage will result in an economic loss.
If, for example, it costs the Indian government 5 rupees to produce a note of Rs 100, the seigniorage is 95 rupees or the difference between the two amounts. Seigniorage gives a country the potential to turn a profit when it produces money.
Hence option (c) is the correct answer.