RBI plans plastic currency notes

Amid instances of counterfeiting of notes, the Reserve Bank on Monday said it was working on launching plastic currency and would soon launch a pilot project.

“Counterfeiting of plastic notes is very difficult. So, we are planning to launch some plastic money on a pilot basis in four-five centres like Jaipur, Shimla, Bhubaneswar and others. We are working on it,” RBI Deputy Governor H R Khan told reporters here.

Under the pilot project, notes of Rs 10 denomination would be distributed through the central bank’s five regional offices.

The proposed shift to plastic currency notes, instead of the usual paper notes, is primarily aimed at checking the counterfeiting, as also high cost associated with printing of paper currency, as they need early replacement due to soiling and mutilation.

These notes would have an average life span of five years, compared with one year for the paper notes. Moreover, these notes are also cleaner.

Besides studying the potential cost savings through plastic notes, the pilot project will also look into the environmental impact of the proposed plastic notes.

Polymer notes were first introduced in Australia. Other countries to have introduced plastic notes include New Zealand, Papua New Guinea, Romania, Bermuda, Brunei and Vietnam.