The reserve Bank of India has started to work over this idea of printing polymer Bank notes to circulate it in the Indian market. Since so long RBI has been contemplating over this idea of printing plastic notes and hence, they are lot of advantages that Indian market can have. It has been found from multiple sources that, the idea of introducing polymer or plastic notes was discussed in last two board meeting of the central bank which was held in Patna and Mumbai.
There are lot of advantages of polymer or plastic notes for example higher shelf life of such currency notes, and it is easy for the public use, the cost of production in producing the plastic notes is lesser as compared to paper notes. ATMs would be set up, and the technology will enable people to withdraw plastic notes. The use of such currency notes will soon be announced by the central bank.
The total expenditure which was incurred in the process of printing paper currency during year 2024 to 2025 was 6372.8 crore and in the previous year the expenditure was incurred as 5101.4 crore mainly due to the increase in printing of Bank notes.
One of the most significant reasons for launching the polymer notes or plastic notes was basically to increase the shelf life of the currency notes.
Many data have suggested that Bank notes were disposed in financial year 25 rising 12.3% from 21 billion pieces in the previous year. Out of them menu of the notes were 500rs notes and 100rs Bank notes.
Currency circulation is mounting at a very rapid pace increasing 11.5% air 242.86 trillion it is a very high record to be noted. This overall indicates a huge demand of cash despite the introduction of many digital platforms.
Surprisingly there is a high demand of Bank notes of denomination which is like much lower like rupees 10 and rupees 20 and it is observed in last few years.
Even though Central Bank has made a lot of effort to popularize the circulation of coins still that effort has not been fulfilled and the desire results are not being achieved.
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Well, the main problem is to increase the shelf life of currency notes rather than combat counterfeiting as per United progressive alliance government.
However, this project is facing a lot of technology challenges in the pass view decades.
However, with the lord of efforts now the things are becoming better, and the technological challenges has finally taken a nosedive, and hence technology is no longer an issue and solution have been arrived timely to ensure that ATM can identify such plastics or polymer notes.
There are lot of countries where polymer or plastic nodes are usually in circulation and now India is also becoming one of them. Among all the countries Australia was the first country to introduce polymer notes or plastic Bank notes starting with the $10 note in 1988. After Australia Singapore introduced polymer or plastic notes followed by Indonesia Thailand Malaysia and many more countries. Now it’s time for India to becoming one of them and India is putting a constant effort in printing plastic notes or polymer notes.
Well, all the credit goes to European country because they also started using plastic note back then in 1998 while Canada similarly introduces notes like polymer or plastic in 2011. However surprisingly US dollars are made up of cotton linen blend material.
