India to get plastic notes soon: Why the move is important - explained
The Reserve Bank of India is initiating field trials for plastic polymer currency notes, starting with 2 billion notes in the Rs 10 and Rs 20 denominations. These notes are expected to have a longer lifespan and better security features compared to traditional paper currency.
Why it matters
Transitioning to polymer notes could significantly reduce the costs associated with replacing soiled currency and help combat the circulation of counterfeit bills.
In the coming months you may be holding a currency note made of plastic instead of paper! India has taken the first step towards introduction of plastic or polymer notes. The move revives a project that was first considered some decades ago but shelved. According to the government, the Reserve Bank of India (RBI) has been permitted to print as many as 2 billion polymer notes - one billion each of Rs 10 and Rs 20 notes. These notes will be printed for field trials and as of now there is no move to replace paper currency which will continue to co-exist as legal tender money.RBI has already floated the tender to source materials for the polymer notes with its currency printing arm Bharatiya Reserve Bank Note Mudran Pvt Ltd (BRBNMPL) inviting global expressions of interest. The tender is for supply of polymer substrate sheets with embedded security features.
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