India Tries Polymer Banknotes in Field Trials
The Reserve Bank of India (RBI) is planning to introduce plastic money in the form of polymer banknotes, starting with an initial batch of 2 billion notes for field trials. According to Minister of State for Finance Pankaj Chaudhary, one billion Rs 10 and one billion Rs 20 notes will be printed on polymer film. The RBI has clarified that paper currency will continue to circulate alongside polymer notes if the trials are successful.
Polymer banknotes have been used in several countries around the world, including Australia, Canada, the UK, New Zealand, and Singapore. They are made from a durable plastic film instead of cotton-based paper, making them more resistant to water, dirt, and everyday wear and tear. Polymer notes also incorporate advanced security features that make them harder to counterfeit.
The RBI has floated a tender to procure the material needed for polymer banknotes, reviving a proposal that has been under consideration for nearly two decades. Chaudhary explained that the introduction of polymer banknotes is in its initial stages and that there is no proposal to replace paper currency entirely.