How you felt when your money torn or washed out? People feel very bad when their money torn or washed out because currency plays an important role in their life as it is a mean of exchange. So, if there is plastic currency note instead of paper, it will be more convenient and durable, as well as will increase security of money.
The Reserve Bank of India is going to introduce Plastic Bank Notes in the ten rupee denomination by the year end. ‘Polymer Bank note’ was first introduced by the Reserve Bank of Australia; then after other countries have introduced it such as Sri Lanka, New Zealand, Malaysia, and Hong Kong etc.
For the pilot project, the bank has decided to introduce 100 crore pieces of Rs. 10, considering its relative cost, carbon footprint associated with the recycling and disposal of plastic notes. If it will be successful, then bank will increase the use of plastic currency. The life span of plastic notes would be 4 times than the paper currency. There is no chance of fake notes in Rs. 10 denomination, as plastic notes have sufficient security features. On the basis of pilot study, RBI will decide to issue currency note of Rs. 20 and Rs. 50 denomination but it is not expected to issue plastic notes of Rs. 5 denomination. Prior to completing the real worldwide bids for the project, the RBI has asked for 500 pieces of sample banknotes to interested parties.
If RBI decides for plastic notes after success of the pilot project, it will increase the demand for the polymer and enhance the domestic polymer industry. A total of seven countries have changed fully to polymer banknotes in 2009 like Australia, Bermuda, New Zealand, Brunei, Romania, Vietnam, and Papua New Guinea. In many countries, plastic currency is introduced on the trial basis such as Malaysia, Nepal, Mexico, Brazil, and Singapore.
If Bank will introduce plastic currency note in India, a number of benefits are available to the people as well as bank. The technology involves highly complicated processes to print plastic currency so it would be difficult to imitate. Plastic notes will be clean compared to the paper currency notes. As it is hard money, it can not be copied, reprinted, and scanned. If RBI introduces plastic currency notes, a number of burdens will be decreased such as exchange of old notes, damage notes and dirty notes.
- Reduce the fake currency problem because it would be difficult to imitate
- Durable than paper note and water proof
- Harder to tear than paper note
RBI to introduce 100 crore Rs 10 plastic notes video from youtube: