RBI planning to introduce plastic currency notes next year

Soyab0007

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Dec 30, 2008
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RBI planning to introduce plastic currency notes next year
The Reserve Bank of India (RBI) is planning to introduce plastic currency notes next year on a pilot basis and improve security features to defeat the efforts of counterfeiters. It also aims to set up a national bill payments system that could eliminate middlemen and bring in efficiencies.

"The Reserve Bank of India is also looking at other alternatives for improving the life of bank notes,'' the central bank said in its annual report for 2013-14. The central bank floated a tender for plastic currency notes in January after years of deliberation. Depending on the trial, the notes should be introduced widely next year.

"Plastic notes are coming... Tender bids have come for 1 billion notes. In five cities, pilot testing would be done, including Shimla," RBI governor Raghuram Rajan said in May after a board meeting in Shimla. "In 2015, it would be launched based on the results of pilot testing."

Plastic notes are stain proof and don't tear easily. Several countries have tried using polymer-based currency notes, although these are costlier than cotton-fibre based paper currency.

The plastic notes may be introduced in Kochi, Mysore, Jaipur, Bhubaneswar and Shimla - centres with different weather conditions. Notes of low denomination will be used in the pilot project.

To further the cause of financial inclusion and protect consumers, the central bank is also planning to review Know Your Customer (KYC) norms without weakening anti-money laundering requirements. It will also review priority sector guidelines, according to changing economic priorities.

Source:
http://economictimes.indiatimes.com/news/economy/policy/rbi-planning-to-introduce-plastic-currency-notes-next-year/articleshow/40637774.cms
 

avi

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Nov 23, 2010
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hey then how do I convert my black money so soon? very bad move.
 

Being.smart

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another environmental hazard, one side they say stop using plastic, other side they are promoting it.

instead they should focus more on digitizing the currency
 

MAGNeT

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May 4, 2005
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I thought it was already introduced in few cities as trial.If its next year they too are on delay path.
Anyways life of notes will increase alot.
 

blr_p

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Apr 11, 2007
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Interesting bit missing from the OP's article

The government will introduce 100 crore pieces of Rs 10 bank notes made of plastic on a field trial basis in five cities, minister of state for finance said on Tuesday.
All five cities are tier-2 & below towns.

hey then how do I convert my black money so soon? very bad move.
Consider that notes dated befor 2005 are still legal tender till the end of this year. You can't change the currency of the entire country overnight. It will take years to phase in.
 

booo

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plastic notes are great. you just don't have to worry about keeping them nice and crispy. They should also include chips inside the notes. :)
 

ayanavish

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Nov 19, 2008
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Good move by RBI. I think Bangladesh has been using plastic (or similar type of substance) as currency material for the last 4-5 years.