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Friday, December 9, 2016

Plastic Currency Notes to replace Paper Currency in India

The much awaited Plastic currency notes may be a reality in near future.Government today has made an announcement in parliament  stating that a decision has been made to print plastic currency notes.They also started the procurement of necessary material



"It has been decided to print banknotes based on plastic or polymer substrate. The process of procurement has been initiated," Minister of State for Finance Arjun Ram Meghwal said in a written reply in Lok Sabha to a query whether Reserve Bank of India (RBI) proposes to print plastic currency notes in place of paper ones.

Plastic Currency Notes to replace Paper Currency in India

RBI has been planning to  introduce plastic currency since long time.Earlier in February 2014 the government has selected 5 cities for distribution of one billion  Rs10 plastic notes for field trials based on geographical and climate diversity.The cities included Kochi,Jaipur,Mysore,Shimla,and Bhubaneshwar.

Advantages of plastic currency over traditional notes


Also, post demonetization after the scrapping of Rs 500 and Rs 1000 notes we have seen many cases where many bundles of these  notes are thrown in to water or tore in to pieces and discarded.But plastic currency are water resistant  and also very difficult to tear apart.Coming to History, plastic currency was first introduced in Australia to fight against counterfeiting.

After the release of Rs 2000 notes, there have been few cases reported stating that fake Rs 2000 notes are in circulation. But with plastic currency, there is no such possibility. One more advantage  is that the average life span of plastic currency is about 5 years much higher than the currency in circulation.



Meghwal in reply to another question said that they were informed by RBI in 2015 where it said to have received some bank notes of Rs 1000 denomination with out security thread.The Notes are printed at Currency notes press (CNP), Nashik and the paper was being  supplied by Security Paper Mill(SPM), Hoshanabad.

He said that disciplinary proceedings have been initiated as under departmental rules and major penalty charge sheet has been issued to the personnel concerned.

Meghwal made it clear that strict action  has been taken to strengthen quality procedure and online inspection system in the manufacturing process.To avoid repetition of such mistakes in future  persons concerned were given special training.






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