The Indian government is preparing to introduce polymer, or plastic, notes. However, the common man will have to wait a little longer to get their hands on polymer currency notes. For those who have been eagerly awaiting plastic notes and wondering when they will be made available, Reserve Bank of India (RBI) Governor Sanjay Malhotra has shared an important update on the planned issuance of plastic notes.
When will plastic notes be issued?
Responding to media questions after the Monetary Policy Committee’s decisions were announced on Wednesday, Malhotra said that the RBI is preparing to issue polymer, or plastic, notes at the beginning of the next fiscal year. This means that the RBI may issue plastic notes in April-May next year. Shortly after, these notes will begin to circulate rapidly in the market.
Polymer notes are made from strong and flexible plastic film
Polymer notes are made from a special type of synthetic material, such as plastic. They use a strong and flexible plastic film on which the note is printed. These notes will be more durable than the currently available currency notes made of cotton fibre paper.
Why polymer or plastic notes?
According to reports, these notes will not just be more durable but will also have lower replacement costs and reduced waste. Moreover, they will have better resistance to counterfeiting.
Plastic notes can last for more than 30 years
The RBI Governor said that some countries have records of polymer notes lasting more than 30 years. These notes will be especially useful for lower denomination notes, which are widely used and circulated. “If all plans proceed as scheduled, we aim to have these notes in circulation by the beginning of the next financial year,” he said.
Planning to print 100 crore notes of Rs 10 and Rs 20 each
Union Minister of State for Finance Pankaj Chaudhary recently informed the Lok Sabha that the Finance Ministry has approved field trials of the RBI’s 10-rupee and 20-rupee polymer currency notes. Pankaj Chaudhary stated that 100-crore notes in the 10- and 20-rupee denominations will be printed as part of the pilot project.
These notes will be released to the market on a trial basis to assess how Indians respond to them. If the trial is successful, a large-scale issuance of plastic notes will be considered.
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