India may soon get plastic notes: Why they matter and what happens to paper money
The Indian government has authorized the Reserve Bank of India to conduct field trials for polymer banknotes. These plastic-based notes are expected to be more durable and cost-effective than traditional paper currency.
Why it matters
Transitioning to polymer currency could significantly reduce long-term printing costs and improve the lifespan of physical money in circulation.
Soon you may be using plastic or polymer currency notes! The government has authorised the Reserve Bank of India (RBI) to print an initial batch of 2 billion polymer banknotes for field trials, the government informed Parliament on Monday.The RBI has recently floated a tender to procure material for polymer banknotes, reviving a proposal that has been under consideration for nearly two decades.Minister of State for Finance Pankaj Chaudhary told the Lok Sabha that the RBI will print one billion Rs 10 notes and one billion Rs 20 notes. These denominations are often in short supply.
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