India Finally Seeks Eco-Friendly Polymer Currency Notes

The Reserve Bank of India (RBI) has finally cleared its proposal to field-test Rs 10 and Rs 20 polymer currency notes. The move marks a significant step in India's currency evolution, coming after a decade-long delay.

The RBI first proposed the introduction of polymer-based currency notes back in 2009 as a pilot project. However, it took three years for the Centre to approve the proposal in 2012.

The test was conducted at five locations across India with varying geographical microclimates. The results showed that the polymer notes caused substantial friction and static electricity while moving through commercial high-speed machines, leading to high error rates for banks.

An environmental audit was carried out in response to concerns about the impact of plastic currency on the environment. However, the report by TERI concluded that the plastic currency is beneficial for the planet in the long term as it has an extended lifespan and reduces the need for new notes to be printed.