The Reserve Bank of India (RBI) is preparing to take a big step towards modernizing the currency system in the country. The Central Bank is now working rapidly on the plan to introduce polymer (plastic) bank notes in place of traditional paper notes. In this direction, the Currency Printing Unit of RBI has invited Expression of Interest (EOI) from global companies for the supply of special polymer substrate (Plastic Sheet). This clearly indicates that a major change may be seen in the Indian currency in the coming times.
What are polymer bank notes?
Polymer bank notes are made from a special type of plastic sheet. These are much stronger and more durable than normal paper notes. Polymer notes are already in use in many countries including Australia, Canada, Britain, New Zealand and Singapore. The experience of these countries shows that such notes remain in use for a longer time and do not spoil quickly.
Why are plastic notes necessary?
According to experts, the biggest feature of polymer notes is their longevity. These last about two and a half to four times longer than paper notes. Apart from this, they are less affected by water, moisture, dust and dirt. Their quality remains for a long time even after repeated use.
Advanced security features can also be added to polymer notes, making them extremely difficult to counterfeit. This is the reason why many countries of the world have gradually adopted polymer notes in place of paper notes.
At what stage is RBI’s plan at present?
At present RBI has invited applications from international companies for the supply of polymer substrate. It will be necessary for the applying companies to have prior experience in making polymer notes for a central bank and to follow international security standards.
This entire process is in the initial stage. RBI has not yet told which denomination of notes will be issued in polymer first or when they will be launched in the market.
Will the existing notes be discontinued?
This scheme does not mean that the existing paper notes will be discontinued immediately. No such announcement has been made by RBI. There is a possibility that polymer notes may be issued in limited numbers in the initial phase and both types of notes will remain in parallel circulation for some time.
Trial has already been done
It is noteworthy that India had tested polymer notes of ₹ 10 on a limited scale in the year 2013. However, this plan could not go ahead at that time. Now once again RBI seems to be active in adopting this technology. If this plan is implemented then Indian currency can become more secure, durable and modern than before.
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