RBI to Roll Out New Polymer Banknotes!

The transition from paper to polymer currency banknotes appears to be imminent. Over the past decade, India has yet to adopt polymer or plastic banknotes and has instead adhered to the conventional practice of printing on paper made from cotton rags.

Polymer or plastic banknotes offer enhanced durability as they are more resistant to tearing, folding, and microorganisms (antibacterial). Additionally, they perform more efficiently in ATMs and automated sorting operations. Despite being twice as costly to produce, these notes have a lifespan 2.5 to 4 times longer than those printed on cotton-based substrate. Furthermore, polymer notes present a higher level of security against counterfeiting.

The Indian government has intermittently discussed plans to introduce polymer banknotes, only to have them shelved repeatedly. Unfortunately, no substantial progress has been reported over the last decade, and despite demonetization providing an opportunity to integrate new technology, its implementation has been further delayed.

Insiders suggest that the Reserve Bank of India is finally contemplating the release of polymer or plastic banknotes in the ₹100 denomination, though there is no official confirmation. Currently utilised in over 20 countries, including Australia, Canada, Fiji, Mauritius, New Zealand, Papua New Guinea, Romania, and Vietnam, polymer or plastic banknotes have demonstrated their effectiveness worldwide.