RBI Revives Polymer Banknote Plan After More Than a Decade
The Reserve Bank of India is once again considering the introduction of polymer banknotes, reviving a proposal that was first explored more than a decade ago, according to a report by Business Standard. The move comes at a time when the cost of printing currency notes is rising sharply and billions of soiled notes continue to be withdrawn from circulation every year. The RBI is expected to announce a pilot project in the near future, with discussions reportedly taking place during the central bank’s last two board meetings held in Patna and Mumbai. Lower denomination notes such as the ₹10 and ₹20 are likely to be selected for the initial trial because they deteriorate quickly due to frequent circulation. Polymer banknotes are made from a synthetic plastic substrate instead of the traditional cotton-based paper used in Indian currency. These notes are generally more durable, resistant to moisture and dirt, and can last significantly longer in circulation. Polymer notes also allow the i...
