New Delhi: Plastic or polymer currency notes may soon be introduced in India. The inside government has tried the proposal of the Reserve Bank of India (RBI), under which field trials of polymer notes of Rs 10 and Rs 20 will be conducted. In the initial phase, 100 crore notes of each of the denominations will be issued so that their strength, tautness and security features can be tested in variegated climates and usage conditions. However, the government has clarified that at present there is no plan to completely ban paper notes.
What will be the biggest benefits of plastic notes?
Polymer notes are considered to be much increasingly durable than normal paper notes. They do not splash easily, they are less unauthentic by water and moisture and their lifespan is moreover longer. Apart from this, modern security features can be widow to them, which makes it very difficult to create fake notes. Low value notes transpiration hands the most, so the forfeit of printing and exchanging them is moreover high. Polymer notes can help reduce this cost.
Will the old Rs 10 and Rs 20 notes be demonetised?
The government has clarified that this is just a test project. This does not midpoint that the existing paper notes will go out of diffusion immediately. During the field trial, both polymer and paper notes will be in diffusion simultaneously. Only without reviewing the test results will the RBI decide whether these notes should be produced regularly in future or not.
Which country in the world first unexplored polymer notes?
Polymer banknotes were first unexplored by Australia. In 1988, Australia issued the world's first fully polymer banknote. Without this, Canada, United Kingdom, New Zealand, Singapore, Malaysia and many other countries moreover unexplored this technology. Today, plastic notes are in diffusion in dozens of countries wideness the world and are considered a largest option in terms of security and durability.
Had such an struggle been made in India before?
The idea of polymer notes is not new in India. About a decade ago, polymer notes of Rs 10 were tested on a limited scale, but they could not be implemented on a large scale. Now RBI has once then decided to take this scheme forward and start testing on the understructure of new technology and global experiences. For this, the process of purchasing special polymer substrate has moreover been started.
Will there be any impact on digital payments?
Experts believe that the introduction of polymer notes will not have any uncontrived impact on the digital payment system. Its aim is to make mazuma increasingly secure, sustainable and low-cost. If the field trial is successful, this technology can be used in other low value notes in future. At present, the unshortened focus of the government and RBI is on assessing the results of the test, without which the remoter strategy will be decided.
